India's internet economy gross merchandise value to grow 6X to hit $1 trillion by 2030: Report

India's internet economy to grow 6-fold to $1 trillion by 2030: Report

The gross merchandise value of India's internet economy, encompassing fintech, SaaS, B2C and B2B e-commerce, will hit $1 trillion by 2030 driven by increased private consumption in Tier 2 geographies, digital public infrastructure and global investments in the country's technology sector, according to a report authored by Google, Bain and Temasek.

The report also said that the country's internet economy was estimated to be valued between $155 billion and $175 billion in 2022.

The report emphasises that the growth will be spearheaded by the business-to-consumer (B2C) e-commerce segment, followed by business-to-business (B2B) e-commerce, software-as-a-service (SaaS) providers, and online media platforms, particularly over-the-top (OTT) players.

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Sanjay Gupta, Country Manager and VP of Google India, shared insights from the report, stating, "India's internet economy is expected to grow six-fold, reaching $1 trillion by 2030." He further expressed his belief that the majority of future transactions would occur digitally.

Gupta acknowledged the leading role of start-ups in digital innovation and highlighted how small and medium-sized businesses, as well as large enterprises, have started embracing digital technologies to enhance their competitiveness in the post-pandemic era.

The report projects that B2C e-commerce will witness a significant surge, growing five to six times and amounting to $350-380 billion by 2030, compared to approximately $60-65 billion in 2022. Moreover, B2B e-commerce is anticipated to expand 13 to 14 times, reaching $105-120 billion, up from $8-9 billion in 2022. The SaaS sector is also predicted to experience substantial growth, increasing five to six times and reaching $65-75 billion by 2030, compared to $12-13 billion in 2022.

Vishesh Shrivastav, Managing Director (Investments) at Temasek, expressed optimism about India's potential, stating that it represents a new ray of hope for global GDP growth.

The report's findings point to a promising future for India's internet economy, highlighting the immense growth prospects and the significant role it will play in the country's overall economic landscape.