By 2015, Internet Services To Add $100 Billion To India's GDP

india-internetAccording to a recent report ‘Online and Upcoming: The Internet’s impact on India’, by Mckinsey & Company, by 2015, Internet-linked services and its penetration will generate $100 billion or 3.3 per cent to India’s gross domestic product (GDP).

The report said that Internet facilitates about six million direct and indirect jobs at present, this could grow to 22 million by 2015. However, for this to happen, India must follow an inclusive path of Internet expansion.

The report reveals that India will be second only to China in terms of citizens using the Internet by 2015. Currently India has a user base of 120 million, which is expected to grow to 370 million by 2015. China has the largest Internet user base in the world with 480 million users followed by the US with 245 million users as of 2011. By 2015 China is expected to have 583 million users, while the US is expected to have 279 million users. According to the report, the global Internet user base is expected to grow from 2,300 million users in 2011 to 2,662 million by 2015.

The report also found that while India scores well on the availability of human and financial capital, it rates poorly on Internet infrastructure, engagement, the e-commerce platform, ease of Internet entrepreneurship and the impact of e-Governance.

Anu Madgavkar, Senior Fellow, McKinsey Global Institute, said,”Low-cost, high-speed connectivity needs to be extended to semi-urban and rural India. Today, Internet penetration among India’s rural population is just one-twelfth that of the urban population.”

The report also stated that, India can achieve broad-based Internet impact by aiming for digital inclusion of nearly 40 per cent of its population to reach a user base of 500 million by 2015, rather than the likely target of 330-370 million.

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