A recently published report by IAMAI-KANTAR titled “Internet in India” shows a huge increase in the number of Internet users in rural India. According to the survey, there are currently 692 million active internet users in India, with rural India continuing to lead the way in terms of growth (351 million users with 37% penetration), while urban India seems to have reached a plateau (341 million users with a penetration rate of 69%). The report projects that by 2025, India will have 900 million internet users, with rural growth driving the increase. Among the states, Goa and Bihar have the highest and lowest internet usage penetration rates respectively.
More importantly for Indian internet companies, 346 million Indians engage in real online transactions like e-commerce and digital payments, which is larger than the estimated US population of 331 million. The country saw a 51% increase in digital transactions during the Covid-19 pandemic, up from 230 million in 2019.
In terms of gender distribution, male internet users outnumber female users in India, with roughly the same gender ratios among urban and rural users.
Currently, 762 million Indians, 63% of whom live in rural areas, have yet to receive internet services. The main obstacle, coupled with ignorance, is still the persistent ‘difficulty understanding the Internet’, especially in rural India.
The “Internet in India” report, based on the ICUBE 2021 study, is an annual report which is the oldest and most in-depth study of Internet usage in the country. It covers approximately 77,000 households in Indian states and union territories (excluding Lakshadweep). The Internet and Mobile Association of India (IAMAI) and KANTAR, a global marketing and data analytics organization, worked together to conduct the survey.
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