New Delhi, August 19, 2016: Internet users in India now number730 million, second only to China, finds a study by the National Association of Software & Services Companies (NASSCOM) in partnership with Akamai Technologies.
The report, “The Future of Internet in India” , aims to understand the impact of the Internet on the way we live, learn, work, shop and connect; and focuses on the future trends that will change the landscape of India by 2020.
According to the report, India’s Internet user base is the second largest after China. Globally, the number of Internet users is expected to touch 4170 million by 2020. The growth of the Internet has successfully created a strong ecosystem for new businesses to tap into growing markets and create solutions to address their demands. 73% of new Internet growth is coming from India's rural areas.
Online shopping will account for two-thirds of the total e-Commerce market, edging out travel. The overall e-Commerce market in India was valued $17 billion in FY 2016, and by 2020, India will have an estimated 702 million smart phones in use and mobile phones will emerge as the preferred device for shopping, accounting for 70% of total online shopping. The fashion and lifestyle segment will emerge as the largest e-tailing category with a 35% contribution to e-Commerce GMV by 2020, overtaking the consumer electronics segment which dominates the sales of Indian e-Commerce industry at present.
50% of travel transactions to be online by 2020. Travel across India, for social visits, leisure, shopping and holidays is all set to increase and more people will be booking online, taking advantage of competitive pricing offered by online travel agents (OTAs) and aggregators. An increasing amount of user-generated content online (views on social media, reviews on websites, etc.) is driving aspirational travel, tipping the scales in favour of trips that were once only contemplated, never undertaken.
Said R Chandrashekhar, President,NASSCOM: “India’s Internet consumption has already exceeded USA to become No. 2 globally. Keeping into consideration the massive impact that the Internet is creating across sectors, it has become the greatest disruptor of our age by changing the way we work, interact socially and live life in general. By 2020, the Internet is expected to penetrate deeper in the hinterlands of the country, helping to create more opportunities for everyone.The rapid growth of the Internet and its expansion into verticals including e-Commerce, Travel and Hospitality, Public Sector, Financial Technology and Media is a clear indication of the state of things to come.”