India’s Internet Boom: Rural Areas Drive Growth as OTT Consumption Tops Usage
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India is on track to become one of the world’s largest digital markets, with over 900 million internet users expected by 2025, according to a recent report by the Internet and Mobile Association of india (IAMAI) and research firm Kantar. This growth is largely fueled by rural regions, which have surpassed urban areas in internet adoption since 2021.
As of 2024, India had 886 million internet users, representing a 58% penetration rate. While the growth rate has slowed—from 14% in 2022 to 10% in 2024—rural India continues to dominate, accounting for 55% of the country’s internet users.
Rural India: The New Digital Frontier
Rural India’s rapid digital adoption is reshaping the country’s internet landscape. In 2024, 55% of India’s internet users hailed from rural areas, a trend that has been accelerating since 2021. This shift highlights the increasing accessibility of affordable smartphones and data plans in these regions.
Urban users,however,spend slightly more time online—94 minutes daily compared to 89 minutes in rural areas. Despite this, rural users are driving key internet activities, from streaming to digital commerce.
top Internet Activities in India
The report reveals that over-the-top (OTT) video and audio streaming apps have become the most popular internet activity in India, surpassing digital communication and social media. In 2024, 732 million users accessed OTT platforms, with 54% coming from rural areas and only 15% from the top nine cities.
Digital commerce also saw notable growth, with 480 million users in 2024. Rural regions contributed 40% of this user base, while the top nine cities accounted for just 21%. Similar trends were observed in online gaming, digital payments, and social media, underscoring the rural-urban digital divide narrowing.
Key Insights at a Glance
| Metric | 2024 Data |
|————————–|———————————–|
| Total Internet Users | 886 million (58% penetration) |
| Rural Internet Users | 55% of total users |
| Urban Internet Users | 45% of total users |
| Daily Internet Usage | Urban: 94 mins; Rural: 89 mins |
| OTT Users | 732 million (54% rural) |
| Digital Commerce Users | 480 million (40% rural) |
The Road Ahead
With rural India leading the charge,the country’s digital ecosystem is poised for exponential growth. The rise of OTT platforms and digital commerce in these regions reflects a broader shift in consumer behavior, driven by increased connectivity and affordability.
As India approaches the 900 million internet user milestone by 2025, the focus will likely shift to enhancing digital infrastructure and ensuring equitable access across all regions.
Engage with the Digital Revolution
What does this mean for businesses and policymakers? The data underscores the importance of tailoring digital strategies to rural audiences, who are increasingly shaping India’s internet economy.
Stay informed about the latest trends in India’s digital landscape by exploring more insights from IAMAI and Kantar.
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This article is based on a report by the Internet and Mobile Association of India (IAMAI) and Kantar. For more details,visit the original source.
India’s Digital Conversion: Rural Internet Boom and OTT Consumption take Center Stage
India is rapidly becoming one of the world’s largest digital markets, with over 900 million internet users projected by 2025. This growth is primarily driven by rural areas, wich have surpassed urban regions in internet adoption since 2021. In this exclusive interview, Senior Editor of world-today-news.com, Rohan Mehta, sits down with Dr.Ananya Sharma, a leading expert in digital economy and rural development, to discuss the key trends shaping India’s internet landscape, the surge in OTT consumption, and what this means for the future of digital inclusion.
The Rise of Rural India as a Digital Powerhouse
Rohan Mehta: Dr.Sharma, the report highlights that rural India now accounts for 55% of the country’s internet users. What factors have contributed to this dramatic shift?
Dr. Ananya Sharma: The transformation in rural India is a result of several converging factors. Affordable smartphones and data plans have made internet access more accessible than ever. Additionally, government initiatives like Digital India and private sector investments in connectivity have played a important role. the pandemic also accelerated digital adoption as people in rural areas turned to the internet for education,healthcare,and entertainment.
OTT Platforms: The New King of Internet Usage
Rohan Mehta: OTT platforms have emerged as the most popular internet activity, with 732 million users in 2024. Why do you think OTT consumption has overtaken other activities like social media?
Dr. Ananya Sharma: OTT platforms cater to the diverse linguistic and cultural preferences of India’s population. With content available in regional languages and accessible on affordable devices, they resonate deeply with rural audiences. Moreover, the pandemic normalized streaming as a primary form of entertainment. Platforms like YouTube, Hotstar, and JioCinema have tapped into this demand, making OTT a dominant force in India’s digital ecosystem.
Digital Commerce and the Narrowing Rural-Urban Divide
Rohan Mehta: Digital commerce has seen significant growth, with rural areas contributing 40% of its user base. How is this reshaping India’s e-commerce landscape?
Dr. ananya Sharma: Rural India is no longer just a consumer of digital services but a driver of digital commerce. Platforms like Meesho and Flipkart have tailored their offerings to rural consumers, enabling them to buy and sell products online. This democratization of e-commerce is bridging the rural-urban divide and creating new economic opportunities. It’s also encouraging businesses to rethink their strategies to cater to this growing market.
The Future of India’s Digital ecosystem
Rohan Mehta: With India expected to reach 900 million internet users by 2025, what challenges and opportunities lie ahead for the country’s digital ecosystem?
Dr. Ananya Sharma: The opportunities are immense—india’s digital economy could become a global model for inclusive growth. However, challenges remain. Infrastructure gaps, digital literacy, and affordability need to be addressed to ensure equitable access. Policymakers and businesses must work together to create lasting solutions that empower rural users and drive innovation. The focus shoudl be on building a robust digital infrastructure and fostering digital literacy to unlock the full potential of this transformation.
Engaging with the Digital Revolution
Rohan Mehta: what advice woudl you give to businesses and policymakers looking to engage with India’s digital boom?
Dr. Ananya Sharma: Businesses must recognize the strategic importance of rural India and tailor their offerings to meet the unique needs of this audience.Policymakers should prioritize investments in digital infrastructure and education to ensure no one is left behind. collaboration between the public and private sectors will be key to sustaining this growth and creating a truly inclusive digital economy.
This interview is based on insights from the report by the Internet and Mobile association of India (IAMAI) and Kantar. For more details, visit the original source.
