Mark Twain: ‘So far as I am able to judge, nothing has been left undone, either by man or nature, to make India the most extraordinary country that the sun visits on his rounds. Nothing seems to have been forgotten, nothing overlooked.’
Since Mark Twain visited and expounded on its beauty, India is still a fascinating place and, in many ways, more ancient than modern. But that may be changing.
Certainly many Indians would prefer that today their country be seen as a high-tech powerhouse, full of vast numbers of educated workers available for outsourcing projects and armies of engineers capable of designing and building the products of the future. And, as shown in the new eMarketer India Online report, India has become one of the most important development centers for software, IT outsourcing, R&D, biotech, customer contact, design and other knowledge-based products and services. And, with GDP growth at close to 7%, India has one of the fastest-growing economies in the world.
The only thing that does not seem to fit India’s image of itself as a high-tech leader is the Internet. Currently, India’s online numbers make it look like a laggard.
In some areas, though, things are changing.
eMarketer estimates there were 27.7 million Internet users in India ages 3 and older in 2005 and projects for 2010 the total to be 67.0 million, a growth of almost 142% over the five-year period. However, the overall population of India dwarfs that of the online community within the country, resulting in only a 2.6% Internet penetration rate for 2005.
Citing the falling cost of broadband, a rising demand for e-commerce and increasing .in domain registrations, the Internet & Mobile Association of India (IAMAI) says Internet adoption is growing in India, and at a record pace.
According to the IAMAI, the number of Internet users in India reached 38.5 million at the end of 2005. That is up 54% in the last year. The trade organization expects 100 million Internet users in India by 2007.
When it comes to broadband, however, India has a lot of catching up to do. According to Point Topic, India has managed fewer broadband connections than Hong Kong, a region it out-populates by nearly a billion. Analysts have estimated broadband penetration to be no more than 3% in India.
On the other hand, retail e-commerce is growing rapidly. The Internet & Online Association of India (IOAI) expects retail e-commerce to experience a 95% increase in FY 2006/2007, reaching sales of INR23.0 billion, or about $494 million.
Is the glass of tea half-full or half-empty? Only time will tell, but after a slow ramp-up online, do not bet against India catching up.
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