‘India’s Digital Push Expected to Add $900B’ – Asian News from UK

By Pune Media On Oct 14, 2024 44

The report provided data showing that smartphone penetration in the country has reached 72.3 per cent, reflecting the growing access to digital tools and services among the population…reports Asian Lite News

India’s digital space presents a significant opportunity of additional USD 900 billion by 2030, according to a report by Motilal Oswal.

The report emphasized that the country’s current digital sector of USD 0.3 Tn accounts for about 8 per cent of India’s Gross Domestic Product (GDP). However, this figure is expected to quadruple to USD 1.2 trillion by 2030, making up 20 per cent of the nation’s GDP.

The report also projected that while India’s overall GDP will grow by 1.7 times by 2030, the digital sector will expand at a much faster rate, growing four times its current size. This rapid growth highlights the increasing importance of the digital economy to the nation’s overall economic structure.

India has already emerged as one of the global leaders in various dimensions of digital adoption. The report provided data showing that smartphone penetration in the country has reached 72.3 per cent, reflecting the growing access to digital tools and services among the population. Additionally, high-speed internet penetration stands at 52.4 per cent, further enabling the growth of the digital sector.

One of the key drivers of digital adoption in India has been the widespread use of the Unified Payments Interface (UPI). The report pointed out that UPI user penetration in the country is currently around 25 per cent, showcasing the adoption of digital payments in everyday transactions.

Moreover, the report noted that the number of smartphone users in India has nearly doubled over the past four years. In 2020, there were 485.1 million smartphone users in the country, a number that has surged to 938.3 million by 2024, highlighting the massive growth in mobile connectivity.

Another key factor contributing to the digital economy’s growth is the sharp rise in data usage. The report revealed that average monthly data consumption per user has seen a two-fold increase over the past four years. In 2020, the average data usage per month stood at 13.5 GB per user. By 2024, this figure has jumped to 24.1 GB per month, underscoring the increasing reliance on digital services and the internet in everyday life.

Overall, the report paints a promising picture of India’s digital future, with robust growth expected across various sectors of the digital economy, driven by increasing smartphone penetration, expanding internet access, and rising data consumption.

Earlier, Union Commerce Minister Piyush Goyal has invited American companies to leverage India’s unmatched scale and take advantage of the ‘Make in India’ initiative, particularly in high-tech manufacturing and quality production.

Minister Goyal, who began his four-day visit to the US this week, had a discussions with existing and potential US investors, highlighting the avenues for cooperation in various sectors.

According to a Ministry of Commerce and Industry statement, in his meeting with Stephen Schwarzman who is the CEO of top investment firm Blackstone, Minister Goyal took note of the fact that the company has already invested about $50 billion in India and is one of the largest commercial and real estate investors in the country.

Timothy F Geithner, President of Warburg Pincus, also called on the minister for a one-on-one discussion that covered various areas where there is scope for further improving the ease of doing business.

“Had an engaging meeting with Sanjiv Ahuja, Founder, Chairman, and CEO of the leading global digital infrastructure firm, Tillman Global Holdings,” the minister posted on X social media platform.

“India’s world-class digital infrastructure offers exciting investment opportunities, including in sustainable data centres. With its skilled talent pool, we are nurturing innovation and enterprise to position India as a leader in green technology and capabilities,” he added.

The minister also chaired a roundtable discussion with young CEOs and entrepreneurs of Indian origin in New York, organised by the Consulate General of India.

The Commerce Minister emphasised the transformative reforms undertaken under the leadership of Prime Minister Narendra Modi, which has propelled India’s remarkable growth over the past decade.

Minister Goyal held one-on-one meetings with several CEOs discussing new areas of collaboration, particularly in advanced manufacturing, pharmaceuticals, robotics, artificial intelligence, and sustainable technologies.

The Commerce MInister met Chintu Patel, Co-CEO, and Chirag Patel, President and Co-CEO of Amneal Pharmaceuticals. They explored ways to enhance India’s pharmaceutical ecosystem for high-end R&D, including biologics, and improved manufacturing capabilities to establish a robust global supply chain.

A productive meeting was held with Henry R Kravis, Co-Founder and Co-Executive Chairman of Kohlberg Kravis Roberts and Co (KKR).

The Commerce Minister highlighted potential investment opportunities in India’s electronics manufacturing, data infrastructure, and logistics sectors. He underscored the consistent economic growth in India over the past decade and the vast consumer market, which present numerous opportunities for strategic investments.

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