During a virtual event ‘IIT-BAA FinTech Summit 2022’ organized by the IIT Bombay Alumni Association on Friday, March 10th, Finance Minister Nirmala Sitharaman said in her keynote address that India’s “digital economy” will be worth $800 billion by 2030, driven by internet penetration, rising youth population, and growth of the fintech sector. The event, which ends today on March 12th, featured representatives from industry leaders in the Fintech sector.
The “$800 billion” figure echoes a report by the consulting firm Red Seer, which estimated the country’s digital economy’s value at $85-90 billion in 2020. Red Seer also stated today on March 11th that the ‘eHealth’ or ‘Health Tech’ sector in India is expected to reach $40 billion GMV (gross merchandise value) by 2030 , and $9-12 billion by 2025.
In 2019, the Ministry of Information Technology had produced a report along with the consulting firm McKinsey stating that India can create $1 trillion in economic value from the ‘digital economy’ by 2025. The then Minister of IT, Ravi Shankar Prasad, had stated: “The trillion-dollar economy report is the symbol of opportunity that India offers”. Minister of State (Electronics and IT) Rajeev Chandrashekhar had said in October 2021 that the digital economy in the country would be worth “$1 trillion” in five years.
The sectoral breakdown of the growth of the digital economy as per the April 2019 report summary by the McKinsey Global Institute is reproduced below:
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