The internet based applications in India have contributed Rs 1.4 lakh crore to Indian GDP in 2015-16 and have potential to contribute Rs 18 lakh crore by 2020, says the latest study.
The study, titled ‘Estimating the Value of New Generation Internet based Application Services in India” and released by Telecom Minister Manoj Sinha in New Delhi here, says nearly half of the contribution of the internet to the economy would be due to apps.
“As per the study, a 17% increase in the total internet traffic in India in 2015-16, contributed to an increase of Rs 7 lakh crore in GDP, of which at least Rs 1.4 lakh crore was due to Internet-based app services. This puts the internet’s contribution to India’s GDP at about 5.6% in 2015-16,” study conducted by Indian Council for Research On International Economic Relations (ICRIER) and telecom lobby group Broadband India Forum.
The study also says that internet traffic helps to increase the Indian GDP growth. “A 10% increase in total internet traffic and mobile internet traffic increases India’s GDP by 3.3% and 1.3% respectively as against the global average of 1.3% and 0.7%”.
“With internet penetration and the start-up ecosystem achieving critical mass, we felt the time was right to study the micro level impact of the internet services and apps on the country and define interventions needed for long term growth,” said Rajat Kathuria, Director and Chief Executive, ICRIER.
The study also suggested addressing some of the key issues to help the further growth of the internet services including improving digital infrastructure, invest in e-governance app ecosystem, encourage the development of vernacular content, promote skill development for app developers, Makemytrippromote government and private sector collaboration.
“Internet apps and services are disrupting traditional industries. Regulation, globally, is evolving to strike the right balance between protecting consumer/business interests and encouraging the ecosystem to innovate further. India needs to chart its own course from a policy/regulation perspective considering the significant higher impact on its economy,” said TV Ramachandran, President, Broadband India Forum.
Companies covered for stud MakeMyTrip, Practo, PayTM, Urbanclap, Netflix, Wynk, Byju’s, Truecaller, farMart and MP Mobile while case study captured different areas included travel, healthcare, education, entertainment, utilities and government services.