The Internet economy of India is growing at a blazing fast rate confirms a report in The Boston Consulting Group’s (BCG) Connected World series.
Currently, internet generated revenue has contributed 4.1% of India’s Gross Domestic Product (GDP). The value has topped Rs. 3 Trillion & is expected to rise further to Rs. 10.8 Trillion within 3 years.
What is fueling the growth? Surely surfing Facebook or spending time on social networking sites does not constitute growth. Indians are churning out software worthy of international companies. Global conglomerates like Wal-Mart have their IT development teams situated in India. Such crucial back-end support systems are at present running some of the largest corporations & their data centers. Even BlackBerry brought some of their servers here. But there could be another angle to it. That said, even small India companies are busy making apps & games for Social websites, thereby earning handsomely.
Overall, Exports alone make up 59% of the Indian Internet economy, whereas domestic consumption is hardly 20%. The report went on to state that had Internet been a ‘Sector’ it would lead even multi-billion rupee sectors including mining & even national utilities! Around the world, companies have begun to respect Internet as a major driver of sales & marketing activities. This is evident from various companies jacking up their online budgets.
India is second only to Argentina in the highest growing Internet Economy country. The margin is very less. India stands at 23% & Argentina leads at 24.3%. The rest of the pack is formed by Mexico (15.6%), Russia (8.3 %) & others.