In 2020, we have now reached a stage where an entire generation does not have the experience of living without an internet connection. Even people who lived and worked during the time when the word ‘internet’ was either unknown or too abstract to grasp find it difficult now to fathom life without the internet.
It is safe to say that the increased use of the Internet has been positive. Distance has become irrelevant, content has become ubiquitous, and discovery has been simplified. Some of the world’s largest businesses have been built on the continual rise of the internet in different parts of the world.
The most central parts of our culture and society have been shifted to becoming a part of the online discourse. From something as simple as interacting with people to complex activities such as monetary transactions & data management have been monopolised by the internet.
India was late to the internet party. While the Western world was already revelling in the brilliance of Google, the magic of Facebook, and the efficiency of Amazon, India was still waking up to something as simple as the installation of an internet connection.
While India was late, she was not slow. The internet has quickly become a key part of the discourse in India. Companies like Google, Facebook, Amazon, and many more have created a foothold in the Indian market thanks to the increased usage of internet in India.
The past decade has been defined by the explosion of internet users in India. A lot of factors have led to this rise. The impact of this explosion has also been widespread.
In this article, we will breakdown the numbers behind the rise of internet usage in India. Furthermore, we will study the impact of increased internet usage on our present & future, and also study why the internet grew so rapidly in India.
The Numbers behind Internet Usage in India
Everyone says internet usage in India has grown. What do the numbers say though?
| Year | Number of Internet Users | Percentage of population using the internet |
| 2014 | 243M | 21% |
| 2015 | 260M | 17% |
| 2016 | 437.4M | 22% |
| 2017 | 483M | 34.45% |
| 2018 | 525.3M | 39% |
| 2019 | 627M | 45% |
As the table shows, the percentage of internet users in India has begun spiralling in the past five years. The rate of growth is much higher than other developing nations such as Bangladesh, Brazil, Pakistan, and China. Although penetration in Brazil and China is higher than India, the rate at which Indian internet users are growing is higher than anyone else. The graph below highlights the percentage of internet users in five different countries including China.
Internet penetration percentage (Source: World Bank)
As the graph shows, the spike in India’s percentage of internet users unlike growth rates of any other nation in the depiction.
From a purely statistical standpoint, India’s case is remarkable. A deeper dive into the numbers can help up imagine the many different possibilities a larger internet-friendly country brings.
The Impact of More Internet Usage in India
The obvious impact the internet has had on Indians is for everyone to see. Information is more accessible than ever, communication is easier & faster, and laborious processes related to finance, shopping, and various other walks of life have been simplified.
For the sake of convenience, we will narrow our scope to the fields of business and marketing. Just as the internet has metaphorically terraformed every aspect of our lives, it has done the same in the fields of business and marketing.
In Business
In business, the internet has ushered the age of internet companies and businesses in India. Back in the 2000s when many people used to decry the lack of entrepreneurship in India don’t do the same any more. From companies like Flipkart and Ola to even niche businesses such as Dream11 and Oyo have managed to become billion-dollar businesses.
Flipkart is an obvious example. Founded in 2007, Flipkart wanted to become the Amazon of India. In 2007, India wasn’t ready to accept Flipkart with open arms. The internet was not considered an essential utility which it has become now in urban homes and offices.
However, Flipkart kept faith in the impending internet revolution to finally arrive. As internet tariffs began to reduce over the unfolding years and smartphones became an essential property to possess, Flipkart managed to become the major e-commerce player in India.
Faith in the internet revolution has been rewarding for the Indian startup scene. Many entrepreneurs only just starting their business understand the need for their business to have an online presence. In fact, the internet has made the process of building a start-up much easier.
In Marketing
Business and marketing are always closely linked. In many ways, marketing can be viewed as the machinery that creates the right environment for businesses to grow, thrive, and most importantly, make money.
Marketing has been impacted deeply by the internet. Businesses in India have realized the need to market to people on digital platforms. This has led to the rise of digital marketing.
Digital marketing has been a boon for businesses and individuals. For businesses, digital marketing is an effective way to reach their relevant audience and achieve crucial business targets. For individuals, digital marketing has opened up an entirely new field to earn money and set up their own business. Activities such as blogging and affiliate marketing have allowed individuals to become self-reliant on earning a living instead of following the 9-5 job dogma.
The graph below gives an interesting take on the growth of digital marketing in these past few years.
The rise of digital ad spending has become an important point of note in marketing circles
What is India Using the Internet For?
Internet usage has gone up in India, but what are Indians using the internet for. The internet is literally a black box, especially when it comes to collating one single trend in a large audience. The chart below shows how Indians are using the internet. The data depicted below is for the year of 2018.
Why is Internet Usage Rising in India?
There are many reasons contributing to the rise of internet usage in India. These factors have been discussed below-
- Smartphone revolution – Smartphones have been the major cause behind the rise of internet usage. Since 2008, the number of smartphones being used by Indians has continuously risen. PCs and laptops, due to their price and overall complexity never became mass tools to introduce people to the digital world and the internet. Smartphones succeeded in this regard.
- Unsaturated Inner Audience – While internet usage is ubiquitous in metro cities, it is not the same in small cities and towns in India. Since this audience has not been saturated by smartphones, it represents a great source for potential growth vis-a-vis internet usage growth
- Cheap Cellular Internet – The spike in internet usage in the past 3-4 years has been driven by the introduction of cheaper internet plans. With Jio launching in 2015 and rolling out in 2016, Indians suddenly had the option of choosing a very cheap internet plan. Coupled with the increasing ubiquity of smartphones, cheap internet made sure internet access in India became simple and widespread.
In Conclusion
In conclusion, this article covers the story of internet usage in India. We could be witness to India becoming the country with most internet users in the coming years. This will bring many opportunities as well in the fields of business, marketing, technology, and countless more.
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