India’s digital economy is predicted to experience significant growth, reaching USD 1 trillion by 2030, driven by an increasing demand for digital products and services, particularly in smaller cities. Google, Temasek, and Bain and Company released a joint research report titled ‘India e-Conomy Report’, highlighting that India is in its ‘Digital Decade’, with its Internet economy projected to represent 12-13% of its GDP by the end of the decade, up from the current 4-5%.
The report stated that India is ahead of many of the world’s largest economies due to the surge in online activities for everyday life. As household consumption is set to double by 2030, the report emphasized the inevitable entrenchment of digital commerce in Indians’ daily lives. The report attributed India’s potential in the digital sector to the growing interest of consumers from Tier 2+ cities, the rapid digitalization of large businesses and MSMEs, and the success of India’s national digital infrastructure, including services like Aadhar, UPI, and Digilocker. The report also examined various digital sectors such as B2C and B2B e-commerce, online travel, food delivery, media, ride-hailing, edtech, healthtech, and SaaS, outlining the opportunities, challenges, and growth catalysts.
The report projected that B2C e-commerce will continue to dominate digital services, growing five to six times to USD 350 billion-380 billion by 2030, with the number of online shoppers expected to double to 500 million-550 million. The report also highlighted that Software as a Service, eCommerce, and EdTech will drive the surge in India’s digital exports. It concluded by stating that global interest in adopting India’s digital frameworks is solidifying the country’s position as a leader in digital technology.
