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Half of the India’s internet users will be rural by 2020 – An opportunity for tech start ups.

There will be a drastic change in the internet users in India by 2020.  More than 50% of the rural population by 2020 will be using the internet into their day to day life. Digitalization is already playing very dominate role in India which is transforming the country into a new era.

Rural India is progressively playing an important in role in growing internet usage. As per the latest survey there are around 270 million urban internet users in India while in rural India, there were around 163 million internet users.  In urban India internet is already gained the importance of basic necessity by usage rate of 60% where as in rural India it’s stood at 18%. As per the latest approximation figure India will have further 900 million online users by 2025, more the combined population of the G7 countries. With increasing usage of the internet users it will result in more increase in the amount of digital commerce that the country may face.

From last couple of years there is enormous increase in the online buying trend, which has shown a seven fold increase rate in online shopping.  Digitally influenced shopping which is at present standing at $50 billion a year, is expected to move more than 10 fold  to between $500 billion to $550 billon and to account for 30% to 40% of all retail shopping by 2025.

In the recent trends many companies are keeping their plans and investments on the expectation that the Indian digital market place will evolve as it did in developed markets.  We hope this underestimates the digital potential in India.  Actual many companies are under-investing for the long term as per the survey.

Moreover many companies are failing to realize that fast-rising digital demand requires more investments in people and capabilities than in physical assets.  Making the transition to a digital organization is a challenge for most companies, but it is all about impossible without the right technology and talent.

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