India's Internet Landscape: Over 50 Per Cent Of Population Are Now Active Internet Users, Rural Areas Driving Growth, Says Report

Over 759 million Indians, which is more than half of the population, actively use the internet and browse at least once a month, as per the joint report of industry organisation IAMAI and market analytics firm Kantar that was released on Wednesday.

India's internet users predicted to reach 900 million by 2025, says the report.

"This is for the first time that the majority of Indians have become active internet users," the Internet in India Report 2022 said, reports PTI.

India is expected to have 759 million 'active' internet users by 2022. Out of these, 399 million are from rural areas while 360 million are from urban areas. This suggests that the growth of the internet in India is still largely driven by rural areas.

"Urban India, with approximately 71 per cent internet penetration witnessed only 6 per cent growth, with much of the overall gain in numbers coming from rural India which witnessed 14 per cent growth rate over the past one year.

"It is estimated that 56 per cent of all new internet users in India will be from rural India by 2025," the report said.

According to the report, there is a significant digital gap in internet penetration rates across different Indian states. Bihar has 32 per cent internet users which is less than the state with the highest usage, Goa, where 70 of the population are internet users.

"Even though the gender divide persists till date with 54 per cent male users, it is heartening to note that 57 per cent of all new users in 2022 were females. It is estimated that by 2025, 65 per cent of all new users will be women, which will help correct the gender divide," the report said.

Digital penetration has improved in spread and depth, according to the report.

Digital entertainment, communication and social media are still the most used services in India, as per the report. Indians are quickly embracing social media as a new e-commerce destination, with social commerce experiencing a remarkable 51 per cent YoY growth.

Digital payments grew by 13 per cent to an estimated 338 million users, with 36 per cent from rural India, the report said adding that the UPI users make up 99 per cent of all digital payment users.