Indian Internet Related Businesses Are Predicted To Reach $100 Billion Valuation In The Next 2 Years

One of the largest demographics of the world, India is now growing rapidly in the Internet domain. Such is the magnitude that the researchers at The Economist are predicting that the Virtual Business playground is going to exceed US$ 100 Billion in its valuation. But what is a shocker is that they claim this milestone will be hit merely within 2 years.

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The official wordings of the report titled ‘Good To Grow’ from The Economist’s Intelligence Unit read,

Even in India, where only 10 per cent of the population is online, 1.6 per cent of GDP is attributed to the rise of the Internet. This is expected to double by 2015 to be worth USD 100 billion — the same size as the nation’s healthcare industry today

What are they implying?

Of India’s 1.1+ Billion Population, only about 150 Million Indians have access to decent Internet connection, but a slightly more number now has access to technology that can avail internet access, but hasn’t yet. Despite such a low figure in comparison, this demographic has begun to enthusiastically turn to the web-businesses to purchase not just merchandise, but services as well.

Despite the advances in purchase activity, it is surprising that majority of the chunk of the predicted income will come from Advertising. Additionally, a significant portion of the Advertising income will be gained from mobile devices apart from other forms of digital promotions.

Is Advertising so critical?

Consider the statistics; Businesses spend only 7% of their advertising budget on digital campaigns, but in terms of money, this figure has already crossed US$ 400 Million. Nonetheless the crucial factor that will swing the big bucks back into Indian Economy is that presently more than 60% of this revenue goes in the coffers of International Companies like Google & Facebook.

As India’s digital advertising companies or agencies who have been taking efforts to bolster their efforts to creatively promote, grow & acquire Indian & foreign clients, the revenue will start pouring & this is what EIU is confident about. What are your views?

One can download the Entire Report here.

Image Courtesy |  businessjournalism

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