GDP nets 1.4 lakh crore from apps in 2015-16

As per the study, a 17 pc increase in the total internet traffic in India in 2015-16, contributed to an increase of Rs 7 lakh cr in Gross Domestic Product (GDP), of which at least Rs 1.4 lakh cr (US$ 20.4 billion) was due to Internet based app services. This puts the Internet’s contribution to India’s GDP at about 5.6 pc in 2015-16.

 The contribution is estimated to grow to nearly 16 pc of the country’s GDP by 2020 or Rs 36 lakh cr ($534 billion), of which apps will contribute about half. The study was unveiled by Minister of Communications, Govt of India, Manoj Sinha in the presence of senior Government dignitaries from MeiTY, TRAI, Niti Aayog and champions of the broadband industry. 

“With internet penetration and the start-up ecosystem achieving critical mass, we felt the time was right to study the micro level impact of the internet services and apps on the country and define interventions needed for long term growth. Interestingly, we found that the ecosystem’s contribution went beyond just economic into social areas such as mainstreaming the differ ently abled and enabling women safety among others,” said Dr  Rajat Kathuria, Director and Chief Executive, ICRIER, who was one of the four researchers on the project including Mansi Kedia, Gangesh Varma and Kaushambi Bagchi. 

The study, beyond econometric estimations, also captures in-depth case studies of 16 service/app companies capturing impact generation at a micro level in key sectors of travel, healthcare, education, entertainment, utilities, digital payments, social, navigation and Government services. Companies covered include Makemytrip, Practo, PayTM, Urbanclap, Netflix, Wynk, Byju’s, Truecaller, farMart and MPMobile. 

The case studies bring alive different aspects of impact created, such as potential for increased income and job creation, easy access to credible information and govt services, lowering costs for buyers and sellers, creating a platform for SMEs and individuals to market their products and services, among others. “India needs to chart its own course from a policy perspective considering the significant higher impact on its economy. It needs to resist the temptation to follow global precedence or come up with defining laws without active stakeholder discussion,” said TV  Ramachandran, President, Broadband India Forum.