ASIA : Surveys predict e-commerce boost in India
[November 10, 1999] The Indian Market Research Bureau (IMRB) broadly estimated that by 2001, e-commerce in India would range between Rs 29,200 crores ($6790 million) and Rs 66,800 crores ($15,534 million).
Meanwhile another study conducted by International Data Corporation (IDC) said e-commerce transactions in India are expected to rise from a mere Rs68 cores ($16 million) in 1998-99 to Rs 2538 crores ($590 million) volume-wise by next year.
But, according to the National Association of Software and Service Companies (NASSCOM), in the current fiscal year (1999-2000), the volume of e-commerce transactions is expected to touch $110 million. Once the IT Bill '99 becomes a law, it anticipates 500 per cent increase in e-commerce transactions in the country.
According to IMRB India's personal computer penetration is only 3.5 millions (as per official records). But India is (in) famous for gray market. Internet connections currently stands at only 800,000 but are expected to rise sharply.
Nasscom says the number of Internet connections in India is estimated to reach 1.5 million by 2000. "If private Internet gateways come up as expected, the figure could cross 2.5 millions by the end of 2000" says a spokesman from Nasscom.
While Web Entrepreneurs are eyeing niche markets and future growth, expatriate Indians are also a key audience. An estimated 200 million (Mohan-it should be 20-30 million not 200 million if I am not mistaken) Indians or people of Indian origin live abroad.
According to the IDC study, the Internet penetration among PC owners in the small office small business (SOSB) segment was 19 per cent, and about 33 per cent intend to get an internet connection in the next 12 months, and the key applications include e-mail, web browsing and file transfer.
In yet another interesting development, the annual survey conducted by Pricewaterhouse Coopers (PwC) revealed that Asian CEOs are getting increasingly Net-savvy day by day. And that day is not too far when the e-business scene in Asia will be quite similar to the US or Europe.
35 per cent of the Asian CEOs had logged on more than 10 times in the four weeks preceding the survey. This, says the report, was an impressive increase from last year's 20 per cent.
The number of Asian CEOs, who never had first hand Internet experience, dropped by a half to 17 per cent said PwC.
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