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The internet could contribute to 3.3 per cent of India’s GDP by 2015 from the 1.6 per cent in 2011.
That expansion offers India an opportunity to transform its internet profile, to expand usage even beyond current projections, and to boost GDP substantially.
But the report says these benefits can only be reaped if a range of public and private-sector stakeholders can put in place the right conditions, argues Online and upcoming: The Internet’s impact on India, a report from McKinsey.
However, even with 330 million users, India’s internet penetration will be a mere 28 per cent.
The report has argued if India manages its online engagement intelligently, its economy could get a major boost.
The McKinsey report states that the impact of the internet in India is constrained by current gaps and obstacles in the net ecosystem.
While India scores well on the availability of human and financial capital, it rates poorly on most other parameters such as internet infrastructure, internet engagement, e-commerce platforms, the ease of internet entrepreneurship, and the impact of e-governance.
By 2015, more than half of India’s internet access is likely to be using a small-screen mobile computing device.
This could create an additional 16 million jobs in India, according to the report.
With the costs of internet access and mobile devices falling, India is “on the verge of an Internet boom,” the report said.