India, a home to about 1.28 billion people currently offers internet to only 350 million souls. By 2020, As a NASSCOM report suggests, another 350 million are going to join the league! The report also suggests, 75% of growth in users will be from rural areas. It wouldn’t be wrong to comment; India is growing at an exponential rate and will soon reach the stars by attracting international market and promoting worldwide innovation.
The second most populous country has embraced the Post-PC era gracefully, against Steve Jobs’ assumptions not with tablets but with smart phones. A wave of 400 million new smart phone users is about to hit the country by 2020, which will account to 70% of all online retail and 50% of the travel bookings in the next four years.
Experts suggest, we need to move beyond the current technology of 3G and 4G in order to reach greater heights and make the next billion mobile and internet friendly. Today, people are not online for a large number of reasons from lack of availability to non-affordable prices of smart phones. But with initiative like Make In India, Digital India and Startup India; the population has taken a fast track on the journey to nationwide connectivity. Vijay Shekhar Sharma, founder – One97 and Paytm, says “Mobile internet is an infrastructure of growth. The government needs to treat it as an obligation to provide connectivity as it does for education and water. Connectivity should be the basic right.”
As internet continues to expand its user base across the country and the government initiatives kick off, the global startup ecosystem has its eyes and ears on the Indian market. International giants like Alibaba and Airbnb are just some to name who plan to take on the Indian market and spend more as the connectivity and scope grows.
The NASSCOM report pointed out the financial technology sector will experience a 1.7x growth from 2015-2020 than the previous time frames, gaining traction from cross border operations. As the initiative is connecting millions of people across the subcontinent, the Indian startup ecosystem should buckle up for the growing competition from the parallel market.
Below is an info-graphic depicting the sector wise statement and future as everyone will soon move around with a well-connected smart phone.