India’s Internet economy grew at 23% making it the second fastest among the G-20 countries.
Overall, the Internet economy in the developed markets of the G-20 will grow at an annual rate of 8 percent over the next five years, far outpacing just about every traditional economic sector, producing both wealth and jobs. China and India stand out for their enormous Internet-related exports—China in goods, India in services—which propel their Internet-economy rankings toward the top of the chart.
As per a report by BCG, Internet economy will contribute a total of $4.2 trillion to the G-20’s total GDP in 2016. “If it were a national economy, it would rank in the world’s top five, behind only the U.S., China, India, and Japan, and ahead of Germany”. The report projects that by 2016 the Internet economy in the EU-27 and India will leapfrog into fourth and fifth place, respectively. Japan and the U.S. will grow more slowly and drop to sixth and seventh, respectively.
Internet Economy in India
By 2016, the Internet economy will largely be driven by consumers, followed by exports.
India Online: The Retail Opportunity
Retail represents almost one-third of total GDP in the G-20, and online retail contributes a significant and increasing share in many countries.
In 2010, the share of online retail in India was only 0.4%, but is expected to touch $84Bn (4.5%) by 2016.
Overall, the report projects that India’s Internet economy will contribute 5.6% to country’s GDP by 2016.