Despite a few hiccups this year, India’s internet industry is expected to grow and could reach a valuation of $5 trillion by 2030, according to a report by market intelligence firm Redseer Strategy Consultants.
India has the second largest internet user base in the world and is home to 780 million internet users, according to the report . As digital will continue to play a significant role, India’s internet Gross Merchandise Value (GMV) will grow to about $1 trillion by 2030, equivalent to $5 trillion in public and private market capitalisation, the report said.
An average Indian spends around 7.3 hours per day on his smartphone, one of the highest in the world. The time spent is across online messaging, social media, YouTube streaming, OTT content and short-form video.
Most of online users come from tier-IIcities and beyond. There is a new trend in content consumption where the time spent on user-generated content is two times of platform-generated content, it said
Digital advertising
The report titled ‘Looking Back at India’s Internet Economy in 2022’ said the drastic increase in digital consumption and increased digital penetration in Tier-2+ cities are the primary growth drivers responsible for the spike in digital advertising ecosystem.
With an increasingly high flow of consumers from tier 2+ cities adopting short video commerce, India is likely to witness a massive surge in digital ad investments instead of driving sales, the report said.