A 10 percent increase in India’s internet traffic leads to, on average, a 3.3 percent increase in India’s GDP, and a 10 percent increase in India’s mobile internet traffic leads to a 1.3 percent increase in the GDP, says a study, ‘Estimating the value of new generation internet based applications in India’, by the Indian Council for Research on International Economic Relations (ICRIER) and Broadband India Forum. It notes that during 2015-16 India’s internet traffic increased by 17 percent, resulting in an absolute increase of $103.9 billion (Rs 6,926.5 billion) in the country’s GDP. “An equivalent increase in India’s mobile internet traffic during the period 2015-16 would result in an absolute increase of $41.4 billion (Rs 2,759.9 billion) in India’s GDP during the year,” the report said. The apps contributed a minimum of $20.4 billion (Rs 1,357.6 billion) in the year 2015-16 to India’s GDP, according to the study. The ICRIER study considers usage of internet app services as a basis to calculate its impact instead of taking into account only access to the internet. The ICRIER examined 16 apps to quantify the economic impact of apps, and where possible, highlight their social impact. 

(This appears in the August 1-15, 2017 issue of Governance Now)