The gross merchandise value of India’s internet economy, encompassing fintech, SaaS, B2C and B2B e-commerce, will hit $1 trillion by 2030 driven by increased private consumption in Tier 2 geographies, digital public infrastructure and global investments in the country’s technology sector, according to a report authored by Google, Bain and Temasek.
India’s Increased Internet Economy
According to the report, the value of India’s internet economy in 2022 was estimated to be in the range of $155 billion to $175 billion. The report highlights that the growth of the internet economy will be primarily driven by the business-to-consumer (B2C) e-commerce sector, followed by business-to-business (B2B) e-commerce, software-as-a-service (SaaS) providers, and online media platforms, with a particular focus on over-the-top (OTT) players.
Sanjay Gupta, the Country Manager and VP of Google India, shared insights from the report, indicating that India’s internet economy is expected to grow six times its current value, reaching $1 trillion by 2030. He further expressed confidence that the majority of future transactions would be conducted digitally.
Gupta acknowledged the significant contribution of startups in driving digital innovation and highlighted how businesses of all sizes, including small and medium enterprises, as well as large corporations, are adopting digital technologies to enhance their competitiveness in the post-pandemic era.
Skyrocketing Growth in B2C E-commerce
The report predicts a substantial surge in B2C e-commerce, with an estimated growth of five to six times, reaching a value of $350-380 billion by 2030, compared to approximately $60-65 billion in 2022. Similarly, B2B e-commerce is expected to expand 13 to 14 times, reaching $105-120 billion, up from $8-9 billion in 2022. The SaaS sector is also projected to experience significant growth, increasing five to six times and reaching $65-75 billion by 2030, compared to $12-13 billion in 2022.
Vishesh Shrivastav, Managing Director (Investments) at Temasek, expressed optimism about India’s potential, viewing it as a new source of hope for global GDP growth.
Overall, the findings of the report indicate a promising future for India’s internet economy, highlighting the immense growth opportunities and the significant role it will play in the country’s overall economic landscape.
