India to get 121 million internet users by 2011 - A GOLDEN ERA FOR E-COMMERCE

Why this is the best time to start your business in INDIA?


There are many entrepreneurs who have an idea to start their own venture but are not sure when to start it. They are waiting for the right time to start their venture. If you are one of them then the following article will compel you to start your venture/business ASAP. Wondering how? Go ahead and read it.


With the increasing Internet penetration India is likely to achieve 121 million internet users by December 2011, according to the annual I-Cube Report


In September 2011, India crossed the 100-million mark of Internet users. According to the annual I-Cube Report, jointly published by Internet and Mobile Association of India (IAMAI) and IMRB.
Out of 121 million, 97 million would be active Internet users who access Internet at least once in a month. Of the 121 million users who claimed to have used Internet in the past, there will be 92 million Internet users from the urban cities of the country and 29 million from rural areas. Of the 97 million active Internet users, 73 million will be from urban cities and the rest 24 million from rural villages.

Recently, IMRB and IAMAI has come out with an interesting report on active internet users in the metros of the country. According to the report, Mumbai with 8.1 million claimed and 6.2 million active internet users is the top internet using city in the country. Delhi including NCR is second with 6.2 and 5.0 million claimed and active internet users. Surprisingly, Kolkata is in the third place and tech city Bangalore rests at number six.

The survey also found that towns with less than 2 lakh population collectively returned a much higher number of internet users than the top four metros put together.

Why you should start your (e-commerce) business in India?

121

Million internet users in India by 2011 end

10%

Of indans will have internet access by 2011 end

21%

of the internet users in India are school children

27%

of the internet users in India are college students

10%

Of the internet users in India belong to the lower economic strata (rural areas)

75%

Access the net more than once a week compared to 68% in 2006

90

Million - Active internet users in India

26.3

Million – active users who access internet through mobile phones

60%

Increase in usage of internet in smaller towns compared to the top 8 metros

87%

Of urban internet users use internet at least once a week

8.7

Million – broadband connections in urban cities in India

The urban rural divide – a great opportunity to tap the internet market

Urban cities Population - 302 million people	Rural cities Population - 603 million
38% Are computer literate (Know how to operate computer) 72% Of the computer literate claim to have used the internet ever 79% Of these are actively accessing the internet, at least once in the past one month 27% Penetration of claimed internet users	8% Are computer literate 36% Of the computer literates claim to have used the internet ever 78% Of these are actively accessing the internet, at least once in the past one month 3% Penetration of claimed internet users

The above graph reflects that usage of internet by youngsters is booming. More than 75% of the internet usage is driven by younger generation. Around a third of young men and working women are heavy users spending more than 16.5 hours on the net. This provides a good opportunity for internet startups to tap these people.

The above graph shows the penetration of internet users is increasing in rural areas. The growth is fuelled by the increasing penetration of telecommunications industry across india as almost all telecom operators are coming up with internet enabled handsets at affordable prices. Moreover the telecom providers are providing internet services such as GPRS and 2G at affordable rates which helps in increasing the usage of internet, thus improving the internet users base in the rural areas.

From the above table it is evident that internet usage is becoming an integral part of peoples live, people use internet at least once a week which helps them avoid physical travel, paper work, meetigns , going to travel agents or taking special trainings. The convenience of online availability of products and services is compelling people to depend on internet to get products and services at their door step. 

Given the above facts this is the most opportune time to tap the potential of venturing into e-commerce in India. What are you waiting for? Get ready with your business plan and get ready to ride the internet boom in India.

extract-icube,exchange4media