India is poised to cross a significant milestone, with its internet user base expected to exceed 900 million in 2025, according to the “Internet in India Report 2024” by the Internet and Mobile Association of India (IAMAI) and Kantar. In 2024, India recorded 886 million active internet users, growing at a steady annual rate of 8%. This surge is predominantly driven by rural areas, which house 488 million users—approximately 55% of the total.
The report also highlights trends in language preferences, with a substantial increase in content consumption in regional languages like Tamil, Telugu, and Malayalam. Another positive development is the narrowing digital gender gap, as women now account for 47% of the total internet user base. Additionally, adopting emerging technologies like AI-powered applications is rapidly becoming mainstream, with 90% of users interacting with such features. This dynamic growth redefines digital inclusivity and paves the way for new opportunities in education, business, and entertainment.
The IAMAI-Kantar Report: A Snapshot of India’s Internet Revolution
The “Internet in India Report 2024” by IAMAI and Kantar provides a comprehensive view of the country’s digital landscape. The report, based on over 90,000 samples across 35 states and union territories, delves into the internet usage patterns, demographic insights, and technological trends shaping India.
Working Model and Revenue Model of IAMAI and Kantar The IAMAI is a not-for-profit industry body representing the digital services ecosystem in India, including internet companies, startups, and digital content creators. Kantar, a global leader in data, insights, and consulting, collaborates with IAMAI to leverage its expertise in market research and analytics. Together, they aim to provide actionable insights for stakeholders by studying user behavior, market potential, and technology adoption.
IAMAI primarily operates on membership subscriptions and sponsorships, while Kantar earns revenue through data-driven consulting projects for businesses worldwide. The collaboration combines industry representation with in-depth research capabilities to create detailed and actionable reports.
Key Findings from the Report
Rural Areas Drive Growth
Rural India is the backbone of the country’s digital expansion, with 488 million users contributing to over half of the total internet population. This region witnessed double the growth rate of urban areas, highlighting untapped potential in smaller towns and villages.
Rise of Regional Languages
Indic languages are reshaping India’s internet landscape. Nearly 98% of users consume content in regional languages, and 57% of urban users prefer accessing digital platforms in their native tongue. This trend underscores the growing importance of language localization and cultural relevance.
Closing the Digital Gender Gap
The report shows that women now make up 47% of India’s internet users—the highest share recorded to date. In rural areas, women account for 58% of shared-device usage, reflecting improved access to mobile devices and affordable data plans. This shift opens new opportunities for businesses targeting female-centric services.
Adoption of Non-Traditional Devices
The use of smart TVs and smart speakers surged by 54% between 2023 and 2024 in urban areas. In rural regions, there was a remarkable 107% year-on-year growth in non-traditional device adoption.
AI Adoption
AI-powered applications have become mainstream, with nine out of 10 users engaging with such platforms. While the enthusiasm for AI is palpable, experts emphasize the importance of ethical use and accuracy.
Background of India’s Digital Evolution
India’s internet story began in the late 1990s but has gained unparalleled momentum over the past two decades. Initiatives like Digital India, affordable smartphones, and low-cost data plans have accelerated internet penetration.
The IAMAI-Kantar report reflects this transformation and sheds light on how rural areas and regional languages are leading the charge. Furthermore, the increasing representation of women online marks a significant milestone in bridging the digital divide.
Learnings for Startups and Entrepreneurs
- Leverage Regional Content: Startups should focus on creating localized content to tap into the vast regional language user base. Platforms prioritizing language localization will thrive in this ecosystem.
- Target Rural Markets: With rural areas driving internet growth, businesses should devise strategies to reach these audiences through relevant content, affordable products, and accessible services.
- Capitalize on Gender Inclusivity: The growing online presence of women offers opportunities for startups to introduce female-centric services and products.
- Embrace Emerging Technologies: Entrepreneurs should integrate AI, smart devices, and OTT platforms into their business models to stay competitive.
- Focus on Device Accessibility: Offering solutions compatible with shared devices or non-traditional devices can capture a broader audience.
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