Report Predicts India’s App Economy to Reach $792 Billion by 2030

According to a report commissioned by Broadband India Forum, the app economy in India is projected to reach USD 791.98 billion by 2030. This growth is expected to contribute 12 percent to the country’s estimated GDP of USD 6.59 trillion.

The report, co-authored by ICRIER Senior Visiting Professor Rekha Jain and IIM Ahmedabad Professors Viswanath Pingal and Ankur Sinha, is based on the assumption that the app economy will grow at 2.5 times the GDP growth rate from 2030 onwards.

The researchers defined the app economy as the economic activity surrounding mobile apps, including app development and sales, in-app purchases, subscriptions, advertisements, PR generated by free apps, and the hardware and software the apps are designed to run on. .

“Our bottom line is that by 2030, the amount of money spent on apps is likely to be around $800 billion. Considering that India’s economy is expected to be around $6.6 trillion, app spending is likely to be around 12 percent of GDP,” Jain said.

According to the data published in the report, the money spent on the app economy is estimated to be around 145.46 billion dollars in 2023, while the gross national product at current prices is around 3820 billion dollars.

The money spent on the applied economy is expected to grow to 791.98 billion dollars, while the GDP is estimated to rise to 6590 billion dollars.

According to Jain, the growth of the app economy is about 32 percent, more than four times the growth of GDP, because the app economy has a significantly higher multiplier in the form of smartphone users and economic growth.

After releasing the report, Electronics and IT Minister Rajeev Chandrasekhar said that the composition and nature of the GDP is increasingly digital and technology-driven.

“We expect the digital economy to be 1 trillion US dollars by 2026. The second most important number is that it will take us more places, with the digital economy accounting for 20 percent of global GDP. In 2014, technology and the digital economy accounted for 4-4.5 percent of our GDP “, the minister said.

He said the digital economy is now growing faster than the economy.