McKinsey: India’s digital economy is second fastest growing in the world

By

Isabelle Crossley

Published
Apr 2, 2019

India has the second fastest growing digital economy in the world, according to a new report by the US-based management consultancy company McKinsey.

The latest McKinsey report ranked India as second, behind Indonesia, in its study of the fastest growing digital markets. I

The report said that India has around 560 million connected internet users who downloaded 12.3 billion mobile apps in 2018. This was the second largest app download total after China, with more and more fashion brands launching dedicated apps in India to harness this trend.

The report also stated that the average social media user in India spends 17 hours a week on social media platforms, which is more time than average users in China and the U.S. 

India’s swift paced and continued digitisation means significant growth potential for the increasing number of fashion and beauty brands that are embracing e-commerce in the nation.

“The opportunity for leapfrogging is available to the poorest sections of society, as the lowest income states have seen the biggest jump in mobile internet subscribers,” the report’s co-authors Alok Kshirsagar and Anu Madgavkar told TNN.

“So now education, healthcare and livelihood opportunities can be delivered to them which won’t have been possible in the PC driven internet age… This is not just about startups but also incumbents who are able to use technology to drive 30-40 percent change in business outcomes.”