India’s burgeoning digital economy continues to point upwards
India’s rapid rise in digital and telecommunication markets has its economy soaring, according to a recent study, as it is expected to have the fifth largest economy in the world later this year.
When the Indian government decided to remove most of its print currency by getting rid of the Rs 500 and Rs 1,000 notes in 2016, it made a dramatic switch that put it on the fast track to a digital-first economy.
These advances are especially noticeable in the telecommunications sector, Ipsos researchers said, where India has an estimated 500 million phone users with Internet access to give it the second-largest amount of mobile phone users on the planet.
“The current decade belongs to the smartphone which has opened significant opportunities for both businesses and consumers,” the study said. “Convenience became the core mantra and customers started to enjoy their position.”
A Credit Suisse report added that data usages among the Indians with cell phones has increased dramatically over the years, which has extended to all sort of growth throughout the digital realm, like with digital-based payments. That same study predicts that the Indian digital payment industry, which is currently priced at $200 billion, will balloon to a value of $1 trillion in five years.
The Indian ride-share app Ola is another perfect example of the popularity of digitally accessed platforms. As the digital revolution places more emphasis on consumer power and the experience of a product, companies like Ola have room to take advantage of the demand for delivery service and convenience sought for by the large volume of cell phone users.
“Customers base their choice not only on the type of car, but around quality of ride, quality of chauffeur and access to entertainment options during the ride, which are purely experience-focused variables,” the Ipsos study read.
One of the major contributors to increased digitalization in India is the country’s relative youth, where nearly half the population is 25 years or younger, according to the report. “The young are taking control of lifestyles, products and popular culture, with optimistic youthful energy,” it stated.