Internet Industry Contributes 3.2% to GDP

With the evolution of ICT worldwide, the Internet becoming a strong and far reaching platform for every business. Slowly and gradually Internet becoming a substantial contributor to GDP across globe. India too witnessing good growth in internet industry. Below graph shows how internet industry is contributing to GDP in fast growing & developed nations-

Per cent contribution to GDP by Internet Industry

- The Internet has 3.4 % share of total GDP of the 13 countries that were studied. The share of the Internet in India with respect to its GDP is 3.2%, fairly close to the global average but still lower than it.

- Private consumption online is driven by purchase of goods and services by consumers through the Internet. India and China have the lowest Private consumption among the 13 countries.

- Trade Balance is the (total export of goods, services and internet equipment along with B2C and B2B e-commerce) minus (internet related imports). The impact of the internet in India was powered by strong exports and contributed 47% to the Internet’s share in India’s GDP. 

- The spending by the government is the Public expenditure in the chart and you will see that the government spending accounts for only 5% of the Internet generated GDP

Though private consumption is very less in India which means still Indians are not shopping and transacting much online but still strong in internet industry against other countries. India has managed to achieve a growth rate previously unseen anywhere in the world and get almost 200 new Internet industry related patents every year.

The challenge for us now, is to capitalize on the human resources available with us and of course, Investment in infrastructure development is a must for to fully realize our growth potential.

Nikhil Kunwar