India's App Economy To Cross Rs 19-Bn By 2016
India’s application ecosystem is thriving, thanks to rising smartphone penetration and lower data tariffs, and is expected to bring more revenues and new employment opportunities. According to a report by Indian Council for Research on International Economic Relations (ICRIER) and Internet & Mobile Association of India (IAMAI), the size of India’s app economy is pegged at Rs 1,964 crore in 2016.
This app economy could generate employment to the tune of or exceeding 6 lakh between in the next one year, the study claims. These app-related jobs in the country would include direct, indirect and induced jobs, and there is likely to be an increase in total employment by up to eight times during 2014 to 2016, states the report.
The study notes that despite the low penetration of smartphones, when compared to mature markets, India accounts for 100 million app downloads a month, placing it among the top five regions for the Android app store, Google Play.
Besides generating revenues for the telecom players, the study notes that around 75,000 full-time jobs have already been created in India by apps as compared to 752,000 jobs, in the US, in 2013, and 1 million jobs in 28 EU countries in 2014.
“The increase in start-ups coupled with an enhanced ecosystem could create employment opportunities. At present, the app economy has created about 75,000 direct jobs, and has the potential to reach 600,000 over a period of time due to indirect and induced impacts of app development,” said Rajat Kathuria, director and chief executive, ICRIER.
On the various other development, the number of 3G sim cards in India is also expected to jump from 35 million in 2012 to 272 million by 2017. India also contributes significantly to app development as roughly 10 percent of global apps are developed by Indians, either based abroad or at home.Subho Ray, president, IAMAI, believes that India’s app economy is at the cusp of an exponential growth. “With e-tailers going mobile only and unprecedented growth in the hyperlocal segment, the sector will not be surprised to witness a faster growth than projected in the report,” says Ray.
The report comes at a time when the government is all set to promote Digital India plan stating that apps will be playing a big role in its success. Some of the basic requirements for this ecosystem to thrive include less regulatory intervention, high smartphone penetration and data usage along with government providing digital infrastructure which can enable demand.
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