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Indian Languages – Defining India’S Internet

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Indian Languages – Defining India’S Internet Indian Languages – Defining India’s Internet A study by KPMG in India and Google April 2017 Executive summary Indian language internet user base grew at a CAGR of Growth in user base will be complemented by the 41% between 2011 and 2016 to reach 234 million users increasing penetration of internet enabled devices, at the end of 2016. This impressive growth has resulted in availability of affordable high speed internet, India’s rising Indian language internet users surpassing the English digital literacy and Indian language enablement of the internet users. ecosystem bringing and engaging more Indian language users online. This growth momentum is likely to continue with the Indian language internet user base growing at a CAGR of 18% to Hindi internet user base is likely to outgrow English user reach 536 million by 2021 compared to English internet base by 2021 and along with Marathi and Bengali users user base growing at 3% to reach 199 million. Indian will drive the volume growth. Tamil, Kannada and Telugu language internet users are expected to account for nearly users will be among the most digitally engaged through 75% of India’s internet user base by 2021. 2016 to 2021. Internet enabled mobile devices to be the clear choice of an Indian language user to consume digital content. Local language digital content will witness greater acceptance from Indian language users as they find it more reliable than English content. Online content categories accessed by Indian language internet users Mature categories Growth categories Emerging categories 2016: High adoption levels 2016: Moderate adoption levels 2016: Low adoption levels Till 2021: User base CAGR at par Till 2021: User base CAGR Till 2021: User base CAGR higher with overall Indian language moderately higher than overall than overall Indian language internet user base growth Indian language internet user internet user base growth base growth Over 90% of Indian language Social media platforms and digital Digital write-ups, digital payments, internet users access Chat news are growing with ~ 300 online government services, e- applications and digital million Indian language users tailing and digital classifieds are entertainment. New Indian accessing them. Indian language emerging categories among Indian language internet users will enabled mobile devices and language users. Indian language contribute to growth in user base increased regional language user base accessing these over the next five years. content will result in more users categories will grow at a CAGR of accessing these categories ~26% to 33% over the next five years. With increased local language support and content, these categories will see increased adoption among users. 2 Future trends of Indian language internet (2021) Rise in user-generated original Indian language enablement of content online platforms, supplemented by mobile compatibility Increasing penetration of affordable Indian language Mobile compatible content in enabled smartphones will Indian language enabled contribute to rise in user applications and websites to generated original content increase adoption of online online services among Indian language internet user Rise of digital advertisements Faster evolution of Indian in local languages language internet users to become active users Indian language users’ higher Increasing penetration of propensity to respond to a internet and internet led digital advertisement in their businesses accompanied local language will increase by improving digital literacy the share of local language will help users make the advertisements in the digital shift from entertainment to medium online transactions significantly faster Indian language enablement of Internet platforms to become digital payment interfaces content aggregators and witness increased time share for Indian Indian language enabled language internet users payment interfaces play a Indian language users’ time pivotal role in Indian spend on internet platforms language users transacting across categories will converge online, enhancing internet’s to transform these platforms as role as a revenue generating content aggregators platform Advanced technology to Increase in hyper local bring more Indian language consumption driven by users online content in Indian languages Advancement in voice Content led hyper local recognition and translation categories will focus on technology and the advent of localised content and end language agnostic internet will to end Indian language drive more Indian language enablement to attract more users and accessible content users online Informed response to Monetisation of Indian sales initiatives by B2C language internet user players behavior analytics Investment by businesses Building multi language to establish digital data analytics channels to reach Indian capabilities will generate language users in Tier 2+ insights for businesses markets directly in their and content generators local languages 3 5 Table of contents Introduction 01 • Introduction to Indian language internet users • Key growth drivers of Indian language internet users • Indian language enabled internet ecosystem • Key behavioural aspects of Indian language internet users Key categories of consumption - 02 Indian language Internet users • Category wise growth for Indian language internet users – 2021 • Language wise Indian language internet users – 2021 • E-tailing • Digital payments • Digital news • Digital classifieds • Online government services • Digital entertainment • Chat applications, social media platforms and digital write-ups Indian language internet – 03 The road ahead Glossary 04 Annexure Acknowledgements 6 01 Introduction 7 Introduction to Indian language internet users India, a nation with over 1600 dialects[1] has 30 languages[1] spoken by more than a million native speakers each. The Indian Constitution recognises 22 official languages[2]. Defining the Indian language users Indian languages* Hindi Bengali Telugu Marathi Tamil Gujarati Kannada Malayalam Speakers (primary languages) 521 101 91 89 75 56 46 40 in India - 2016 (in million) Language Indian language users - 2016 Diversity Index 254 53 40 64 40 32 32 22 (in million) (LDI) in India 0.93[3] Indian languages users are Indian language literates who prefer their primary language over English to read, write and converse with each other *These 8 languages have been considered as Indian languages for the purpose of this report [Source: KPMG in India’s analysis, April 2017] Indian language internet users are the present and the future[4] Internet user base in India (in million) Indian language internetintenet usersusers 800 English intenet users English internet users Indian language internet 700 users have grown from 42 million in 2011 to 234 million in 2016 600 languages500 are the dominant Currently, there are 234 million 536 Indian language internet users family400 of languages spoken in compared to 175 million English the Indian subcontinent internet users 300 234 Indian language internet users are 200 expected to grow at a CAGR of ~ 18% to reach 536 million in 2021. 100 English users is expected to grow 42 175 199 at a CAGR of 3% 68 0 2011 2016 2021(P) 9 out of every 10 new internet Total internet users in India over the next 5 users in India 110 million 409 million 735 million years are likely to be Indian Source: KPMG in India’s analysis, April 2017 (P): Projections language users 1. Census of India, Government of Indian, 2001 2. 8th schedule of the Indian Constitution, as on November, 2015 3. Investing in Cultural Diversity and Intercultural Dialogue, UNESCO World report, 2009 4. KPMG in India’s analysis, April 2017 8 Key growth drivers of Indian language internet users Indian language enablement of online Reduced mobile ecosystem data charges Rising Increasing language support and content across the Mobile data costs disposable [5] Internet ecosystem reduced by ~96% income from September 2016 to December 2016 Disposable income in India expected to grow by ~55% by 2020[5] Growth in overall internet penetration Internet penetration in India expected to grow to 52% by 2021[4] Improving digital literacy in rural India Government’s digital Growth in literacy drive to reach 60 smartphone users million rural households 176 million[6] new with an investment of [7] smartphone users USD351* million by expected in the next 5 March 2019 years 4. KPMG in India’ analysis, April 2017 6. Number of smartphone users in India from 2015 to 2021 (in million), Statista.com 5. Indian Media and Entertainment Industry report, KPMG India – FICCI, March 2017 7. Indian Union Budget, 2017 *Exchange rate: 1USD = INR 67 9 Indian language enabled internet ecosystem Overview of the ecosystem and associated operational elements Majority of the online content currently available in Indian languages includes news and entertainment. Chat applications and social media platforms have seen increased adoption by Indian language users on account of local language enabled keyboards and smartphones. In recent times, e-tailing, digital classifieds, digital payments and online government services have also started to enable Indian language content on their platforms. Key categories Chat applications Content creators Content developers Digital entertainment Government Website designer services Social media Content Content platforms generators . Offline/ localisation Application developer Content online companies aggregators business Digital news . Regional Content management websites Freelance system
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