India draws multinationals looking for new business opportunities. However, while some leaders see it only as a place for low-cost operations, the country offers much more, note Global Managing Partner Bob Sternfels, Senior Partner Shivanshu Gupta, and coauthors. For example, it boasts a thriving digital economy, with more than a billion smartphone users. Digitally connected consumers in India now make up over 40 percent of global internet transactions. In fact, the value of digital commerce through Open Network for Digital Commerce, a government-sponsored platform that connects online buyers with businesses, could rise fivefold to between $320 billion and $340 billion by 2030.
Image description:
A stacked bar chart displays the estimated digital products and services consumption in India by category, in billions of dollars, for the years 2022 and 2030. The chart is structured with a 2022 total value of $70 billion shown at the bottom left of the chart and a 2030 projected value of $340 billion at the top. The bar is divided into sections, representing different categories of digital products and services.
On the right, the chart lists categories and their projected value ranges (in billions of dollars) for 2022 and 2030. The Products section includes electronics and durables ($24 billion–$26 billion in 2022, projected to reach $70 billion–$72 billion in 2030), fashion and lifestyle ($11 billion–$13 billion in 2022, projected to reach $80 billion–$82 billion in 2030), other retail ($2 billion–$3 billion in 2022, projected to reach $12 billion–$14 billion in 2030), hospitality ($3 billion–$4 billion in 2022, projected to reach $8 billion–$10 billion in 2030), pharmaceuticals ($1.0 billion–$1.5 billion in 2022, projected to reach $10 billion–$12 billion in 2030), and grocery ($4 billion–$5 billion in 2022, projected to reach $50 billion–$55 billion in 2030).
The Services section includes food and beverages ($5 billion–$6 billion in 2022, projected to reach $30 billion–$32 billion in 2030), education (projected to reach $30 billion–$32 billion in 2030), mobility ($3 billion–$5 billion in 2022, projected to reach $9 billion–$11 billion in 2030), and entertainment ($3 billion–$5 billion in 2022, projected to reach $17 billion–$19 billion in 2030). The chart’s color-coding differentiates categories, with darker shades of blue representing the Products section and lighter shades of blue representing the Services section.
Footnote: Entertainment includes gaming, over-the-top services, film, and TV; excludes B2B advertising spending, estimated at $11 billion in FY 2021 and $21 billion in FY 2026. Hospitality includes hotels and homestays. Other retail includes books and general merchandise.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
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To read the article, see “India: The promise and possibilities for global companies,” April 10, 2025.