New
Delhi, July 03, 2013: India’s Internet Economy that stands at 1.6% of
GDP is slated to US$ 100 billion by 2015. This was announced today, at the
global launch of a report “Good to Grow:
The Environment of Asia’s Internet Business” by Economist Intelligence Unit & sponsored by Asian Internet Coalition.
One of the key factor that will drive the
internet economy in India is digital & mobile advertising. At present, advertising
revenue in India is at 7%. But, of the US$ 410m being spent online, 60% goes to
Google and Facebook, with only the remaining 40% going to other online players.
While online advertising in Asia is forecast to grow at a modest pace (from 24%
of worldwide online advertising in 2010 to 26% by 2015) the mobile advertising
market is really taking off. By 2015 Asia is expected to account for one-third
of the mobile advertising market globally.
But the report also reveals the dark side of
India’s online payment and credit card penetration. On both fronts, India
stands at an abysmally low penetration of 2% compared to South Korea, Taiwan
and Singapore. The Report also comes down heavily on internet censorship that
is acting as an impediment to growth. The report states, “Asia is still finding its way with respect to governance and regulation
of the Internet. In some markets such as Vietnam regulation is mostly
undeveloped, which can be seen as a blessing since it allows companies to move
quickly and freely. In others, such as South Korea, there are stricter
regulations which operators say hamper their business. The one area where ample
regulation is in place is around liability for carrying content that either
contravenes laws or is otherwise frowned upon. These often poorly worded or
confusingly interpreted pieces of legislation create uncertainty for business
owners, as well as high administrative costs in order to put safeguards in
place. India, Thailand and Malaysia stand out as places where censorship is on
the rise.”
Speaking at the launch of the report, Laurel West of Economist Intelligence Unit
said, “India’s regulatory environment has considerable room for improvement.
While the Ministry of Communications and Information Technology is responsible
for the frequent issue of laws relating to Internet governance, there is no
specific regulatory body for content and platform creators. Some, particularly
smaller operators, take this as a good thing, since it means fewer barriers to
entry, particularly compared with manufacturing and other over-regulated
industries. But the downside is that there is no central avenue for
communication with businesses that will be affected by changes in the law”.
About
Asia Internet Coalition
The Asia Internet Coalition is an industry association formed by eBay, Facebook, Google, Salesforce and Yahoo! Incorporated to promote understanding and resolution of Internet policy issues in Asia Pacific.
The Asia Internet Coalition is an industry association formed by eBay, Facebook, Google, Salesforce and Yahoo! Incorporated to promote understanding and resolution of Internet policy issues in Asia Pacific.
About The Economist Intelligence Unit
The Economist Intelligence Unit (EIU) is the
world's leading resource for economic and business research, forecasting and
analysis. It provides accurate and impartial intelligence for companies,
government agencies, financial institutions and academic organisations around
the globe, inspiring business leaders to act with confidence since 1946. EIU
products include its flagship Country Reports service, providing political and
economic analysis for 195 countries, and a portfolio of subscription-based data
and forecasting services. The company also undertakes bespoke research and
analysis projects on individual markets and business sectors. More information
is available at www.eiu.com
or follow us on www.twitter.com/theeiu
The EIU is headquartered in London, UK, with
offices in more than 40 cities and a network of some 650 country experts and
analysts worldwide. It operates independently as the business-to-business arm of
The Economist Group, the leading source of analysis on international business
and world affairs.
For queries please contact:
Deepika/ Veenit
Out – There PR & Communications
deepika@out-therepr.com / +91 98117 88350
veenit@out-therepr.com/ + 91 99906 50264
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