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Growing internet penetration to help India become $1 trillion digital economy, says report

May 17, 2018

According to a joint report by IBM and Kalaari Capital, India is banking on 850 million internet users and 90 per cent smartphone penetration in the next three to four years to achieve $1 trillion value from its digital economy by 2025.

The government is aiming to create a trillion dollar economy through its Digital India campaign. The report outlines a 30-point implementation module for the ambitious goal.

As per the report, both state-run and private sector organisations are making significant contributions to improve internet infrastructure across the country in order to implement digital initiatives.

While mobile phone penetration is expected to increase from 65 per cent to 90 per cent by 2022, the number of internet users is estimated to exceed 850 million by 2022, up from 450 million at present. In fact, every one out of two internet users is expected to be from rural areas over the next three to four years. Of the total, 40 per cent internet users will be women and 65 per cent of users will be more than 25 years of age.

Further, in order to make mobile phones more accessible, organisations have designed affordable devices and softwares for at least 40 million smartphone users.

Apart from the internet infrastructure, the BharatNet project is expected to boost internet connectivity in coming years boosting the use of digital initiatives for people. The report also outlined how a state government run effort can contribute to the $1 trillion digital economy target citing Telangana’s initiative to provide internet throughout the state via broadband and wireless technologies and 2,000 wireless links for state-wide coverage.


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