India’s Digital Economy to Reach USD 1.2 Trillion by 2030
India’s digital sector is poised for significant growth, with projections indicating an increase from USD 0.3 trillion to USD 1.2 trillion by 2030. This growth will see the digital economy account for 20% of India’s GDP, up from the current 8%. The report by Motilal Oswal highlights the rapid expansion of the digital sector, which is expected to grow four times its current size, outpacing the overall GDP growth of 1.7 times.
Key Drivers of Growth
Smartphone penetration in India has reached 72.3%, and high-speed internet access is at 52.4%, facilitating the digital sector’s expansion. The Unified Payments Interface (UPI) has also played a crucial role, with 25% of the population using digital payments.
Increasing Connectivity and Data Usage
The number of smartphone users has nearly doubled from 485.1 million in 2020 to 938.3 million in 2024. Additionally, average monthly data consumption per user has increased from 13.5 GB in 2020 to 24.1 GB in 2024, reflecting the growing reliance on digital services.
Overall, the report suggests a promising future for India’s digital economy, driven by increased smartphone use, internet access, and data consumption.
Doubts Revealed
Digital Economy -: The digital economy refers to economic activities that use digital technology, like the internet and smartphones, to do business. It includes things like online shopping, digital payments, and internet services.
USD 1.2 Trillion -: USD 1.2 trillion is a way to measure a very large amount of money in US dollars. It shows how big India’s digital economy is expected to become by 2030.
GDP -: GDP stands for Gross Domestic Product. It’s the total value of all goods and services produced in a country. It helps us understand how big a country’s economy is.
Smartphone Penetration -: Smartphone penetration means how many people in a country use smartphones. In India, 72.3% of people are expected to have smartphones, which helps the digital economy grow.
High-speed Internet Access -: High-speed internet access means having fast internet connections that allow people to use the internet quickly and easily. In India, 52.4% of people have access to this, which supports digital activities.
UPI -: UPI stands for Unified Payments Interface. It’s a system in India that allows people to make instant money transfers between bank accounts using their phones.
Data Usage -: Data usage refers to how much internet data people use on their devices. In India, people are using more data than before, which shows they are doing more activities online.