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January 23, 2012

if Broadband is priced at Rs 200, India will be no.1 using Internet

According to a report titled ‘India: The Impact of Internet’, jointly prepared by ICRIER, DIT and IAMAI, if broadband is priced at Rs 200, internet penetration can witness exponential growth in India and India will be the no. 1 in uses of internet.Currently India is no 3 just behind the china & U.S.A. The report studies impact of internet at the micro level through 17 case studies across seven impact areas, viz. Agriculture, Health, Education/Training & Employment, Ecommerce/ BPOs, Financial Inclusion, and Community Development.

Country or Region
2011 Est
Internet Users
Year 2000
Internet Users
Latest Data
% Users
China 1,336,718,015 22,500,000
23.0 %
United States 313,232,044 95,354,000 245,000,000 11.6 %
India 1,189,172,906 5,000,000
4.7 %
Japan 126,475,664 47,080,000
4.7 %
3.6 %

The report says that India stands to add US$ 17 billion in GDP annually for every 10 per cent increase in internet and broadband penetration. In comparison, a 10 per cent increase in mobile penetration can increase the GDP by 1.5 per cent. 

Further, an additional US$ 87 billion in GDP during 2012-2014 can be generated if targets are achieved as per TRAI’s NationalBroadband Plan. However, missing the targets set by the National Broadband Plan in 2004, India lost approximately US$ 100 billion in GDP in the interim. 

The report also shows that States with higher internet penetration can grow by 1.08 per cent points for every 10 per cent increase in the number of internet subscribers. Developing States of India have chances of greater growth dividend than developed States if there is higher internet penetration. For example, if Bihar had half as many as internet subscribers as that of Punjab, it would have resulted in an increased growth of 7.02 per cent in the State’s per capita income.

According to the recommendations of the report, internet penetration can witness an exponential growth if broadband has a price point of around Rs 200. The trigger point in lower price point has been reflected in massive adoption of mobile phones and cable TV. The report also recommends speedy implementation of optical fibre network to reach 250,000 Gram Panchayats in the next 3 years. It further recommends that broadband network be established in schools, government agencies including hospitals especially rural telemedicine centres.

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