'With smartphones and Internet penetration, India digital economy to touch $1 trillion by 2025'

India’s nominal GDP is estimated to touch around $3 trillion ($2.848 trillion precisely) by 2018. The country expects to touch $5 trillion numbers by 2025; of the total size, $1 trillion will be contributed by the digital economy.

The high number of 850 million Internet users and 90 per cent smartphone penetration in the next few years will help the digital economy to achieve the target number, according to a joint report by IBM and Kalaari Capital.

The report called India’s Trillion Dollar Digital Opportunity said the digital inclusion of non-digital natives, expansion of Internet into rural areas, and the inclusion of more women Internet users, among others will be the main factors to push digital economy.

It further explained that under BharatNet project, 2.5 lakh gram panchayats will be connected with Internet in the next 3 years. Currently, more than 1 lakh villages are service-ready. Besides, 50 per cent of Internet users is expected to be from rural areas over the next 3-4 years. Of the total, 40 per cent internet users will be women and 65 per cent of users will be more than 25 years of age.

The report also outlined the contribution of both government-run organisations and private sector that are working to improve internet infrastructure across the country in order to implement digital initiatives.

The report also highlighted the role of a state government and how it can contribute to the $1 trillion digital economy target. It cited the example of Telangana where the state government has provided Internet throughout the state via broadband and wireless technologies and 2000 wireless links for state-wide coverage.

India Internet economy is growing at a fast pace and will be worth around $500 billion in the next four years, Aruna Sundararajan, Chairman, Telecom Commission earlier said.

Amidst this, private organisation like Google is also working independently and connecting villages and women with the Internet. It launched a 21-month programme and claimed to train 15 million women across 150K villages.

The development was first reported by ET.