if Broadband is priced at Rs 200, India will be no.1 using Internet

According to a report titled ‘India: The Impact of Internet’,jointly prepared by ICRIER, DIT and IAMAI, if broadband is priced at Rs 200,internet penetration can witness exponential growth in India and India will be the no. 1 in uses of internet.Currently India is no 3 just behind the china & U.S.A. The report studiesimpact of internet at the micro level through 17 case studies across seven impactareas, viz. Agriculture, Health, Education/Training & Employment, Ecommerce/BPOs, Financial Inclusion, and Community Development.

#	Country or Region	Population, 2011 Est	Internet Users Year 2000	Internet Users Latest Data	World % Users
1	China	1,336,718,015	22,500,000	485,000,000	23.0 %
2	United States	313,232,044	95,354,000	245,000,000	11.6 %
3	India	1,189,172,906	5,000,000	100,000,000	4.7 %
4	Japan	126,475,664	47,080,000	99,182,000	4.7 %
5	Brazil	203,429,773	5,000,000	75,982,000	3.6 %

The report says that India stands to add US$ 17 billion inGDP annually for every 10 per cent increase in internet and broadbandpenetration. In comparison, a 10 per cent increase in mobile penetration canincrease the GDP by 1.5 per cent. 

Further, an additional US$ 87 billion in GDP during2012-2014 can be generated if targets are achieved as per TRAI’s NationalBroadband Plan. However, missing the targets set by the National Broadband Planin 2004, India lost approximately US$ 100 billion in GDP in the interim. 

The report also shows that States with higher internetpenetration can grow by 1.08 per cent points for every 10 per cent increase inthe number of internet subscribers. Developing States of India have chances ofgreater growth dividend than developed States if there is higher internetpenetration. For example, if Bihar had half as many as internet subscribers as that ofPunjab, it would have resulted in an increased growth of 7.02 per cent in theState’s per capita income.

According to the recommendations of the report,internet penetration can witness an exponential growth if broadband has a pricepoint of around Rs 200. The trigger point in lower price point has beenreflected in massive adoption of mobile phones and cable TV. The report alsorecommends speedy implementation of optical fibre network to reach 250,000 GramPanchayats in the next 3 years. It further recommends that broadband network beestablished in schools, government agencies including hospitals especiallyrural telemedicine centres.

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