India's digital economy soars, hit $1 trillion by 2030

India's internet economy is projected to reach $1 trillion by 2030, growing six-fold in the next eight years, according to a report by Google, Temasek, and Bain & Company. The report, titled 'The e-conomy of a Billion Connected Indians,' highlights India's significant digital growth, surpassing the world's largest digital economies.

With over 700 million internet users, including 350 million digital payment users and 220 million online shoppers, digital services have become integral to Indian consumers and merchants. As household consumption is expected to double by 2030, digital commerce will further embed itself in everyday experiences.

The report emphasizes three key forces driving India's digital transformation: increasing consumer digital adoption, technology investments by businesses, and digital democratisation through initiatives like the India Stack. Internet sectors, particularly B2C e-commerce, are on positive growth trajectories, with the expectation that B2C e-commerce's gross merchandise value will reach $380 billion by 2030. Other sectors such as online travel and ride-hailing are also projected to scale 4-5 times over the decade.

Furthermore, digital financial services, including payments, lending, investments, and insurance, are poised for promising growth. The report highlights the immense potential of digital exports, driven by success stories in SaaS, edtech, and B2B e-commerce, while emphasizing the importance of a skilled talent base, domestic market insights, and supportive regulations as enablers for unlocking opportunities. Overall, the report underscores the transformative power of India's internet economy and the diverse avenues for growth across sectors.