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India’s digital sector could add an additional $900 billion by 2030, according to a report by Motilal Oswal.
The report outlines how the rapid adoption of smartphones, internet access, and digital payments is transforming the country’s economy, projecting that the sector will make up 20% of India’s GDP by the end of the decade.
Digital Sector to Quadruple by 2030
Currently valued at $300 billion, India’s digital economy contributes around 8% to the nation’s Gross Domestic Product (GDP). The report forecasts this figure will surge to $1.2 trillion by 2030, representing 20% of India’s GDP.
In comparison, India’s overall GDP is expected to grow by 1.7 times during this period, while the digital economy is set to expand fourfold, underscoring its pivotal role in the country’s growth trajectory.
Rising Smartphone and Internet Penetration
India is emerging as a global leader in digital adoption, with 72.3% smartphone penetration across the population. The spread of high-speed internet, which now reaches 52.4% of the population, is driving growth in digital services and applications.
The number of smartphone users in India has nearly doubled in just four years—from 485.1 million in 2020 to 938.3 million in 2024. This explosive growth highlights the increasing accessibility of mobile technology.
Digital Payments on the Rise with UPI
The report identifies the Unified Payments Interface (UPI) as a major force behind digital adoption in India. Currently, around 25% of Indians use UPI, indicating widespread acceptance of digital payments in everyday transactions.
Data Consumption Doubles in Four Years
The report also points to a sharp increase in data usage, reflecting India’s growing dependence on digital services. Average monthly data consumption per user has risen from 13.5 GB in 2020 to 24.1 GB in 2024, marking a twofold increase over four years.
Promising Future for India’s Digital Economy
Motilal Oswal’s report presents an optimistic outlook for India’s digital sector, with robust growth expected in the coming years.
The combination of rising smartphone ownership, expanding internet access, and increasing data consumption is poised to propel the sector to new heights. This rapid digital transformation positions India as a major global player in the digital economy, with far-reaching implications for industries and consumers alike.
