Internet penetration in India is only 150 mn as of FY2013 and is expected to increase to 330 mn by 2015. Currently one-third of the population accesses the internet only through the phone, one-third through the computer only and the rest on both computers
as well as mobile phones. By FY2015, only 10% of the users are expected to access internet only though a computer.
Smart phones in India are expected to post CAGR of 56% over FY2014-15. The increasing use of mobile phones in India is evident from the fact that 40% of the queries on Google now are routed through phones. The number of banking queries coming through the phone has increased 5X between FY2012 and FY2013, 3X for insurance and 2.5X for investing.
Online shopping has grown at more than 5X across the top eight states in India. The deep penetration of e-commerce is evident from the fact that over 9,000 PIN codes have been serviced by companies involved in the business spread over 3,500 towns. Statistics show that among people buying online, most belong to the 25-35 age group, 60% are families that have average monthly income over Rs72,000.
The scope/acceptability of e-commerce in India is increased by the favorable demographics in the country.