Online India

BY Ranjan Srivastava| IN Digital Media | 03/06/2006

Ranjan Srivastava

Chief of Bureau, Prabhat Khabar, New Delhi

There is a lot of buzz around us about the Internet just as there was about the mobile phones some years ago. It was  followed by a boom in the  mobile industry. Internet is growing at a fast pace and increasingly becoming part of an ordinary Indian`s life. Infrastructure level constraints are being removed, and every morning we see some new developments in this domain. The mobile boom arrived  in India after low cost mobile sets and cheap tariffs were in place. Today broadband connections are made available at rock bottom rates. New innovations are on to develop low cost PCs. There are a lot of efforts on the content front, too. So, is the Internet in India is following the same path mobile followed? Are these efforts going on, mark a new epoch in development of Internet in India?

In a very recent remark Google CEO Eric Schmidt has said that India will be the largest Internet market in the coming 5-10 years, and Hindi will be on the three most important languages on the web. A recent study by IOAI (Internet and Online Association of India) estimates there will be 100 million net users in India by 2007. Today it is at 25 million and a four-fold growth is estimated in less than 2 years. All these remarks float hope, but don`t provide any clear-cut answer about future of Internet.

Regarding usage of Internet, there are many other questions, too. What are the Indians doing on the web? Who are they and what is their profile? What is the online behaviour of Indians? How is the Internet shaping the lives of millions of Indians? Has it entered their lives or not? Which are the areas mostly touched by the web wave and which are the abandoned areas?

Till recent, we had no clear answers to all these questions. But now two pieces of research are available, which offer some valuable insights.  Among these, the first is India Online 2005, prepared by an online research company JUXT CONSULT. Another is India E-commerce Report 2005 prepared by the  Internet and Online Association of India (IOAI). Though the domains of these studies are different, but both offer insights into what is happening on the Web in India. Both the reports are based on online surveys. These surveys were done in the middle of 2005.

The E-commerce Report has given two important estimates: first, the number on Net users in India will reach 100 million by 2007 and second, the value of  e-commerce in India will reach  Rs 2300 crore by the same period. It is surprising to know that e-commerce was just Rs 130 crore in 2002-03. In 2005-06 it stood at Rs 1180 cr. In a span of five years, e-commerce is expected to grow 18 times. Similarly, online transactions have increased from 20,7000 in 2003-04 to 79,5000 in 2005-06. These estimates are encouraging.

The India Online Report 2005, prepared on the basis of more than 30,000 responses from 10 cities, reveals some new facts about Internet usage in India. Here are some excerpts:

1.Internet is touching the lives of Indians, but not entering them. For most net users logging on to the net has become a daily routine. But they use it mostly for personal communication and `work` related activities.

2.About a third of net users spend more than 3 hours on the net, use it throughout the day and log on at least five times a day. This is the class of net users, which can be called netoholics.

3.Unlocking the speed barrier is must for growth of Internet here. To keep people hooked up, technical problems such as  `slow speed` and `frequent disconnections` should be resolved.

4.The image of the Internet has to change. Most people treat it as a `work` tool, searching for professional information than as a tool for personal information.

5. E-commerce is increasing, but security is the most common fear in the mind of net users. This fear is the greatest impediment for the growth of on-line transaction.

The report concludes that to achieve the expected growth, particularly in urban India, Internet would have to break two barriers. First, resolve the technical constraints. Second, make it relevant for users` lives.

This report breaks many myths related to Internet usage. The first is about what people do on the Net. It concludes that porn is not the most popular activity. Most popular activities are e-mail, news/events, career development, downloading application forms, sports/cinema, job search etc.

Some other results of this report are also very interesting to understand the situation of Internet usage in India. The 19-40 years age group is the major section (85%) of the total net users. Similarly, office is the most preferred place to go online. About 62% users access the Internet from there workplace. 90% of the net users are highly educated. Graduates comprise 46% of the total net users, while Post-Graduates 26% and people with Professional qualification 19%. It has made in-roads among all sections of life. 83% users have no car and only 25% use credit cards. Similarly, 70% of the total users have a monthly income near Rs 10,000, only 13% have a monthly income of more than Rs 50000.

However, the  Internet is largely a male bastion. Only 15% users are women. About half among them are working. Housewives comprise only 2%.

Seventy per cent users come from the biggest 8 cities - Mumbai, Delhi, Chennai, Kolkata, Banglore, Hyderabad, Pune and Ahmedabad. Mumbai, Delhi and Bangalore alone account for 51% users. The eastern zone of India is most backward regarding to Internet usage. Only 7% users come from this area. Western zone accounts for 36%, Southern zone for 31% and Northern zone for 26%. Executives and students are the largest categories using Internet.

Logging-on has become a daily routine for most users.  Eighty five per cent users use the Net at least once in a day. Three in 10 users use net for more than 3 hours a day. There is no prime time on the net. Users use it all the time except between midnight to morning. The survey notes some barriers that users feel while using the net: difficulty in getting connected, slow speed, unsolicited ads and cumbersome navigation are main ones. Users feel irritated due to these problems and this psychological problem creates a big barrier to Internet usage.

Internet, though has not entered deep into the Indian`s lives, but it has become a working tool for most users. Users utilise the Net for their professional requirements and communication, but the least for entertainment, learning and personal information search. E-mailing is what, people use most. However, the report says that the scenario is not disappointing. Forty six per cent users are experienced in buying something online. Eighteen per cent are buying regularly. Another positive sign is that a lot more people are using the Net to search for their personal needs. 35%-45% net users regularly search information related to purchase of products or services. Similarly, the number of users using net for their personal needs is also increasing. In India, 60% activities on Net are related to  job and career activities, 48% each for net banking and product information, and 46% each for computer skill enhancement, market info and downloading/listening music. Nearly 40% activities are done for health/lifestyle info and booking of train/air tickets, while 30% activities are done for downloading or playing games and paying bills.

With number of Internet users increasing in India at a fast pace, it is accurate to say that India will become the largest market for Internet. Like mobile, the Web fever is grappling Indians. Constraints are being resolved and no doubt, India will soon see a web wave.

1 India E-commerce Report 2005, by Internet and Online Association of India (IOAI). For detail report visit www.iamai.in

2 India Online 2005 by Juxt consult. For detail report visit www.juxtconsult.com

The writer can be contacted at ranjan1174@gmail.com