Internet penetration

Cheaper internet plans and devices made 2013 a catalyst year in terms of increasing internet penetration and number of web users in India. Internet users exhibited a Y-o-Y growth of 39 per cent in 2013, whereas in 2012 it was 28 per cent.

This growth has resulted in substantial boost in various other digital industries such as e-commerce and digital advertising as well.

Northward trend

According to a recent report by Internet and Mobile Association of India (IAMAI), the number of web users in India is expected to hit 243 million by June 2014. Out of the vast number, 192 million users are expected to be active. The number of claimed internet users in December 2013 was 213 million, while the number of active users was 169 million.

Mobile internet users witnessed humongous growth too. Mobile internet grew 111 per cent in 2012 and 63 per cent in 2013.

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Impact on digital industries

The impact of internet penetration has seen a considerable spurt in the digital commerce industry. The digital commerce market that stood at INR 8,146 crore in December 2007, reached a whooping INR 47,349 crore by December 2012. The number then rose to INR 62,967 crore in 2013.

Between December 2011 and December 2012, the segment witnessed 35 per cent growth, and 33 per cent growth between December 2012 and December 2013.

Digital advertising also managed to display steady growth. The online advertising market in India is projected to reach INR 2,938 crore by March 2014. The YoY growth in 2012 was 40 per cent, while in 2013, it stood at 30 per cent.

These numbers — which will only grow by the day — demonstrate that India is on the path to becoming one of the biggest internet populations across the globe.

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