Over 800 Million Internet Users In India, 707 Million Actively Used OTTs In 2023: IAMAI Report

India's Internet penetration has crossed the 800 million mark in 2023, reaching a total of 820 million active users, indicating that over 55 per cent of the population accessed the Internet last year.

The report identifies communications, with 621 million users, and social media, with 575 million users, as the second and third most popular Internet services among Indian users, respectively.

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A significant majority of Internet users in India, comprising approximately 707 million individuals, are actively engaged in Over-the-Top (OTT) audio and video services, marking it as the predominant use of the Internet within the country. These statistics have been disclosed in the 'Internet in India Report 2023', a collaborative effort between the Internet and Mobile Association of India (IAMAI) and KANTAR, a marketing data and analytics firm.

The report, unveiled by Harsh Jain, Chairman of IAMAI and CEO and Co-founder of Dream Sports, during the opening session of the India Digital Summit 2024, held at the Jio World Convention Centre in Mumbai, underscores the significance of the Internet in India. According to Jain, the report draws upon the extensive ICUBE 2023 study, which surveyed over 90,000 households across all Indian states and Union Territories, excluding Lakshadweep, making it the most comprehensive analysis of Internet usage in the nation.

Non-Traditional Streaming Devices Lead The Charge

In addition to OTT services, the surge in digital entertainment consumption is propelled by the increasing adoption of non-traditional devices such as smart TVs, smart speakers, Firesticks, Chromecasts, and Blu-Ray players. This category has witnessed a remarkable growth of 58 per cent between 2021 and 2023 nationwide. Notably, there has been a shift in viewing habits, with more individuals, totalling 208 million, accessing video content solely through Internet-enabled devices compared to 181 million utilizing conventional linear TV services.

The report identifies communications, with 621 million users, and social media, with 575 million users, as the second and third most popular Internet services among Indian users, respectively. It defines OTT as audio/video streaming from either subscribed or user-generated content platforms, while communication encompasses various forms of online interaction such as text, voice, or video chat, email, and video conferencing.

Furthermore, the report highlights the pivotal role of rural India in driving these Internet use cases, with over 50 per cent of the user base originating from rural areas.

Over 800 Million Internet Users In India

India's Internet penetration has crossed the 800 million mark in 2023, reaching a total of 820 million active users, indicating that over 55 per cent of the population accessed the Internet during the previous year. Internet penetration increased modestly by 8 per cent year-on-year (YoY) nationwide, with rural India contributing over 53 per cent of the total user base, amounting to 442 million users.

The gender ratio among Internet users has also witnessed a notable transformation, shifting from 71:29 in favour of males in 2015 to a more balanced 54:46 ratio in recent years, closely aligning with the overall sex ratio of the country's population.

Despite the deceleration in growth rates observed in both urban and rural areas, particularly post-pandemic, the report emphasizes that the absolute numbers continue to reflect significant progress, given the vast user base of over 800 million individuals. The report suggests that focusing on Indic languages could potentially accelerate growth, as 57 per cent of users prefer accessing content in regional languages, with Tamil, Telugu, and Malayalam exhibiting strong preferences.

Encouragingly, states with the lowest Internet penetration rates, such as Jharkhand (46 per cent penetration) and Bihar (37 per cent penetration), are exhibiting above-average growth rates of 12 per cent and 17 per cent, respectively, indicating promising signs for future expansion.