India’s millennials, about 28% of the population, will drive the internet growth especially online transactions in the coming years, a top Morgan Stanley official has said.
“These young people are going to be a lot open to adopting technology and become conduit for improving tech penetration within the entire population as well,” said Parag Gupta, the executive director who leads the technology, internet and media practice for Morgan Stanley India.
An average per capita income of the Indian millennials (a person reaching young adulthood around the year 2000), was $2,400, while those above 45 years earned about $2,150 in 2015.
“We believe this could propel internet penetration and online adoption/engagement in India,” said a recent Morgan Stanley survey.
The millennial will lead the older in increasing the internet use, Gupta added.
“The younger generation will start transacting online a lot faster. We expect India to be the fastest growing e-commerce market globally,” he said, citing their higher earnings from a consumer survey.
The avenue for online transaction growth is phenomenal, averaging 60% based on compound aggregate growth rate during 2014 and 2020. The growth for overall internet market is seen at 45% compound annual growth rate (CAGR) during same period. He sees daily increase in the number of internet users.
“We are seeing about 100 million smartphone shipped into India annually which are essentially going to first time internet users. This means we are now adding 100 million new internet users every year,” he said.
“We are expecting to see 790 million internet users by 2020,” Gupta said.