Internet to contribute up to $100 billion to India's GDP by 2015

 

According to McKinsey & Company prediction, in the next three years Internet services and devices industry will amplify its contribution to $100 billion i.e. about Rs. 5.5 lakh crore to India’s GDP. The report also says that this industry will produce about 2.2 crore recruitments by 2015.

As per the report named ‘Online and Upcoming: The Internet’s Impact on India’, Internet contribution in GDP was 1.6 per cent ($30 billion) in 2011.

McKinsey & Company partner Chandra Gnasambandam stated that currently this industry has generated 1.6 per cent to India’s GDP which could be increased to 2.8 to 3.3 per cent by 2015, if India gets more Internet users and Internet technology-related consumption and investment.

He further added that this could increase Internet’s contribution to GDP from $30 billion now to $100 billion in 2015 as well as increase direct and indirect jobs from 6 million to 22 million.

The report further mentioned, currently India is on third rank in the world’s Internet market with 120 million Internet users, which is expected to grow to 370 million users in 2015. 

Currently the most significant component of the Internet’s impact on GDP is India’s information and communication technology (ICT) exports. However, private consumption and investment from private and public sector can also influence growth in future.

 

 

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