India's digital space has opportunities to add USD 900 bn by 2030: Motilal Oswal
Oct 12, 2024
New Delhi [India], October 12 : India's digital space presents a significant opportunity of additional USD 900 billion by 2030, according to a report by Motilal Oswal.
The report emphasized that the country's current digital sector of USD 0.3 Tn accounts for about 8 per cent of India's Gross Domestic Product (GDP). However, this figure is expected to quadruple to USD 1.2 trillion by 2030, making up 20 per cent of the nation's GDP.
The report also projected that while India's overall GDP will grow by 1.7 times by 2030, the digital sector will expand at a much faster rate, growing four times its current size. This rapid growth highlights the increasing importance of the digital economy to the nation's overall economic structure.
India has already emerged as one of the global leaders in various dimensions of digital adoption. The report provided data showing that smartphone penetration in the country has reached 72.3 per cent, reflecting the growing access to digital tools and services among the population. Additionally, high-speed internet penetration stands at 52.4 per cent, further enabling the growth of the digital sector.
One of the key drivers of digital adoption in India has been the widespread use of the Unified Payments Interface (UPI). The report pointed out that UPI user penetration in the country is currently around 25 per cent, showcasing the adoption of digital payments in everyday transactions.
Moreover, the report noted that the number of smartphone users in India has nearly doubled over the past four years. In 2020, there were 485.1 million smartphone users in the country, a number that has surged to 938.3 million by 2024, highlighting the massive growth in mobile connectivity.
Another key factor contributing to the digital economy's growth is the sharp rise in data usage. The report revealed that average monthly data consumption per user has seen a two-fold increase over the past four years. In 2020, the average data usage per month stood at 13.5 GB per user. By 2024, this figure has jumped to 24.1 GB per month, underscoring the increasing reliance on digital services and the internet in everyday life.
Overall, the report paints a promising picture of India's digital future, with robust growth expected across various sectors of the digital economy, driven by increasing smartphone penetration, expanding internet access, and rising data consumption.
