McKinsey and Co. has issued a report titled ‘Online and upcoming: The Internet’s Impact on India’. The report basically says that mobile Internet usage in India is about to shoot even further up. It says that more than half the Internet users will be accessing the web by 2015. The number is even more significant when you consider that the report projects a comparatively smaller growth of 15% in other developing countries.
India’s Internet Industry (covering all alread of Internet enabled business) has already contributed somewhere around $30 billion to the Indian GDP in 2011. This amounts to 1.6% of the total GDP calculation. The report says this figure could reach $100 billion in the next 3 years. This prediction is only favorable if the country follows ‘an inclusive path of Internet expansion’. This means that the country should allow for the Internet to grow in an unfettered way without blocking any aspects. This could be realized if the laws regarding Internet usage and business are fair.
The growth potential for India in the Internet space is tremendous but it can only come to second place behind China by 2015. The number of Indian Internet users is predicted to climb up to 330 million from the present number of 120 million. 120 million maybe a lot but compared to the population of the India, the penetration rate is only 10%, which the report says is the lowest one in the world. Imagine if more people start using the Internet, we could be looking at the beginning of a huge Internet economy in the country. More people will definitely get onto the web due to various factors like cheaper internet enabled phones, easier connectivity to the Internet and the growth of social media. According to McKinsey, even if the country doesn’t take an aggressive approach towards getting everybody online, the country will still grow to 330 million users by 2015. Imagine if we do become aggressive about promoting the Internet! As it turns out, the Internet revolution in the country is only just beginning.
There are great lengths to go yet, but I do see it happening. The next 3-5 years are crucial. Our broadband infrastructure needs to improve. More people should be digitally literate and there should be more impetus and support provided to Internet and Technology startups. We do have some awesome startups in the country who are trying to solve some key problems using the Internet. But we need more of them! We have so many people who have yet to use the Internet. There is plenty of room for many more disruptive businesses, services and solutions in the country if more people get online.
What do you think about the report’s findings? Share your views with us in the comments.
Story Source | Livemint
Image Source | Youbibo