NASSCOM-Akamai study nails Indian Internet habits

  • Slow but steady lurch to online buying and travel

'We are like that only'

Internet users in India now number 730 million, have exceeded the US and are second only to China, finds a study by the National Association of Software & Services Companies (NASSCOM) in partnership with Akamai Technologies.

The report, “The Future of Internet in India”, seeks to understand the impact of the Internet on the way Indians live, learn, work, shop and connect—and focuses on the future trends till 2020. In India, the number of Internet users is expected to touch 4170 million by 2020. Interestingly, 73% of new Internet growth is seen to be coming from India's rural areas.

Online shopping which was worth $17 billion in 2016 will soon account for two-thirds of the total e-Commerce market, edging out travel. By 2020, India will have an estimated 702 million smart phones in use and mobile phones will emerge as the preferred device for shopping, accounting for 70% of total online shopping.

The fashion and lifestyle segment will emerge as the largest e-tailing category with a 35% contribution to total e-Commerce value by 2020, overtaking the current leader consumer electronics segment.

The availability of affordable smartphones and tablets has encouraged the second screen phenomenon. With the rapid adoption of smartphones and next generation networks, content consumption patterns and consumer engagement channels are rapidly evolving. The video-on-demand (VOD) market is highly competitive in India.

Financial technology is disrupting financial services and is likely to have far more widespread impact on society and the Indian economy, both directly and indirectly. The fintech software market was pegged at $1.2 billion (13-15%2 ). The remaining 87% focusses on services, predominantly payments and core banking services.

Canny Indian still prefer to pay on delivery but this is slowly changing with use of mobile banking and e-wallets surging.


Half of all travel transactions should be online by 2020, taking advantage of competitive pricing offered by online travel agents (OTAs) and aggregators.

Says R Chandrashekhar, President, NASSCOM: “India’s Internet consumption has already exceeded USA to become No. 2 globally. Keeping into consideration the massive impact that the Internet is creating across sectors, it has become the greatest disruptor of our age by changing the way we work, interact socially and live life in general. By 2020, the Internet is expected to penetrate deeper in the hinterlands of the country, helping to create more opportunities for everyone. The rapid growth of the Internet and its expansion into verticals including e-Commerce, Travel and Hospitality, Public Sector, Financial Technology and Media is a clear indication of the state of things to come.”

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