According to Morgan Stanley, while Reliance Jio brought telecom services revolution in India, the coronavirus pandemic will give a further push to digital adoption in the country as more and more people take to e-commerce to buy products.
Morgan Stanley in its recent report on ‘India’s Digital Economy in a Post-COVID-19 World’, added that people moving to online shopping will also lead small businesses to digitise as well. The year 2020 will see a rise in online penetration in grocery, and will also lead to creation of super apps.
Further, the bank added that while India has a burgeoning internet user base, it is much lower as compared to China and the US where over 70 per cent of the population uses digital services. India’s digital user base is expected to expand significantly to 914 million by 2027 as compared to the current 670 million internet users. Of this, about 590 million will shop online as compared to 190 million in 2020. The users are also expected to spend double the current amount of their average costs and the same will jump to $318.
As per Morgan Stanley, the launch of Reliance Jio’s 4G telecom services in September 2016 has helped spur the digital economy in India as it propelled internet usage in the country, with fast, reliable, and cheap 4G services leading to significant growth in data usage (especially on music and video content).