India's online shoppers are expected to double by 2030. (representational)
India's internet economy is expected to grow six-fold to a trillion dollars by 2030 with households doubling their income in the next seven years, said a report by Google, Temasek and Bain & Company.
The internet economy's share in India's GDP will increase from 4-5% to nearly 12-13% in 2030, with 350 million digital payment users and 220 million online shoppers leading the growth, the report said.
The 'e-Conomy' contribution to India's technology sector is expected to rise to 62% in 2030 from 48% in 2022.
The report titled 'The e-Conomy of a Billion Connected Indians' said India's internet economy is "roaring" towards a trillion from around $175 billion of consumption in 2022, due to a continued shift in consumer behaviour and evolution of the business ecosystem.
This growth will be founded on consumers seeing their household incomes double by 2030 from approximately $2,500 to $5,500 by the end of this decade, it said.
The report, based on surveys of consumers and investors as well as an analysis by Bain & Company, added that the appetite for digital services and products in Tier 2+ cities is matching the demand in metro and Tier-1 cities.
The report projected that business-to-consumer (B2C) e-commerce will continue to maintain a leading share of digital services, growing five-six times to around $350-380 billion by 2030.
India's online shoppers too are expected to double by then.
"Three foundational forces - deepening consumer digital adoption, technology investments by businesses, and digital democratization with the India Stack - has placed India at a turning point in its digital transformation. Structural shifts in consumption potential are opening up a vast opportunity for start-ups, large businesses and MSMEs to power India's internet economy towards a projected growth of six-fold," said Sanjay Gupta, country head and vice president, Google India.
Vishesh Shrivastav, managing director, Investment (India), Temasek said, "Widespread digital adoption among consumers, as well as businesses, is accelerating the growth of India's internet economy at an unprecedented rate."
"India's internet economy has remarkable potential and is expected to grow six times over the next decade, with B2C e-commerce driving 40% of the digital gross merchandise value (GMV), followed by B2B (business-to-business) sectors and SaaS (software-as-a-service)," said Parijat Ghosh, managing partner, Bain & Company (India).