Mobile Technology will charge Indian Economy

Over the last few decades, the Indian Economy has witnessed a significant transformation. From being primarily an agricultural economy, the services sector has overtaken and has become the leading contributor to growth. E-commerce sector is also emerging as the largest contributor to growth of Indian Economy. Within the services sector, the communication sector has grown at an astonishing 25.7% from 2000-01 to 2008-09. Even during the financial crisis year of 2008-09, while other sectors slowed down, communication sector continued its forward march.

Since then, the importance and role of telecom sub-sector and services is well known. Rising per-capita income and introduction of affordable handsets and lowest call rates have all led to an explosion in the subscriber case. India is the second largest user of mobile in the world with 900 Million users in the world, it accounted for 12% of world’s online population. Findings reveal that every 10% increase in mobile penetration rate leads to a 1.2% increase in GDP.

In last 2-3 years, e-commerce sector emerged as the astonishing business sector. E-commerce companies revealed that maximum number of users explore and order products from mobile. Therefore, companies are shifting their marketing focus towards mobile technology. In the next five years, E-commerce sector will contribute up to 2% to Indian Economy. Mobile apps are becoming the key thing for every company and business today.

For developing markets, basic mobile services still dominate and mobile data is the next wave of development. A doubling of mobile data use leads to a growth in the GDP per capita growth rate of 0.5 percentage points. Telecom companies are coming with 4G penetration in the market, which will be new boost to economy. Research said that, a 10% rise in 3G-penetration increases GDP per capita growth by 0.15 percentage points.

Next thing, which will charge Indian Economy, is the Internet. Every business is dependent on Internet these days. No apps, no site can run without Internet. It has become the necessity of human being today. Mobile phones are more useful when they are connected to Internet. India lacks behind in providing good internet connectivity to its citizens. However, government and big firms like Google, Facebook are working on drones project to provide Internet connection to all citizens across the world.

There are several other benefits of mobile phones. They significantly help to maintain physical and psychological health when family members move away from home. In addition, they enable women to maintain three roles within the household, simultaneously being wives, mothers, and wage earners. More mobile phones subscriptions are correlated with more democratic participation, less gender inequality and longer time spent in education. In all three areas, the impact of mobiles on social development indicators is stronger in developing countries. All these benefits of Mobile technology will charge Indian Economy.