India’s internet economy is on the road to becoming a $1 trillion ecosystem by 2030, according to a study by consumer-focused consulting firm RedSeer.
The report stated that the rapidly growing internet penetration rate, high-speed internet access, and increased online shopping and digital content consumption would contribute to the growth.
The report divides India’s digital consumers into three cohorts based on the diversity and needs of the population.
The first consists of 80-100 million people, who earn over $12,000 annually, live in metropolitan areas and expect high-quality services. Several players have adapted global models to serve this Indian cohort.
The second is the aspirational and budget-conscious population with an annual income of $5,000-12,000. The estimated digital population of this segment is 100-200 million.
The third consists of 400-500 million people in the rural segment and tier-2 cities with an annual earning of less than $5,000. This is the most difficult cohort to reach and need digital intervention to help them solve their problems. As per RedSeer, the third cohort is also the most important demographic to reach in the digital space.
“India’s journey to a $1 trillion consumer internet economy has been a unique story of multiple internet sectors such as e-tailing, e-Health, and Quick Commerce, coming together to create a strong foundation for a consumption-led economy,” Anil Kumar, CEO and founder of RedSeer, said.
He said the ongoing journey from digital-first to digital forward resulted from multiple internet sectors having shown strong momentum post-COVID.