VERY LOW ..I NDIA HAS LESS THAN 1 BROADBAND CONNECTION PER 100 - PowerPoint PPT Presentation

A DDRESSING I NTER -S TATE I SSUES : B ROADBAND I MPACT ON ECONOMIC G ROWTH Rajat Kathuria ICRIER

B ROADBAND P ENETRATION IN I NDIA IS STILL VERY LOW …………..I NDIA HAS LESS THAN 1 BROADBAND CONNECTION PER 100 INHABITANTS 16 Broadband Internet 14 12 10 8 6 4 2 0 Internet & Broadband subcribers (million)

IS SUES � Broadband penetration is below 1% in India � Rural India had only 3.3 million internet user i.e. only 1% of rural India is covered � As evident there is huge variation in per capita income across states in India Cost of Broadband in India is 260 � Assumed access cost of Broadband is times higher South Korea while compared to China it is 65 times compared to China it is 65 times is 300-400 per month in India is 300-400 per month in India higher…………….. .... (from CII report 2009) � Our earlier research “ India: the impact of Mobile Phones”, 2009 shows that Indian states with higher mobile penetration grow faster, with a growth rate of 1.2% points higher for every 10% increase in mobile penetration. � From our recent analysis we find high correlation for broadband, internet and state GDP

P ER C APITA I NCOME ACROSS STATES , 2008 700 600 500 400 300 200 100 0

I NTERNET P ENETRATION IN PAST 10 YEARS ACROSS STATES 10 9 ernet penetration 2000 2003 8 per 100 person 2006 2009 7 6 5 4 3 pe Inter 2 1 0 Only few states in past 10 years have internet penetration above 1

I NTERN E T P ENETRATION AND ECONOMIC GROWTH ………………I NTER - STATE A NALYSIS Per Capita Income Internet Penetration per 100 persons Penetration 70000 9 come (Rs.) 0 persons 8 60000 7 50000 6 Per Capita Inco 40000 40000 Internet P 5 5 per 100 4 30000 3 20000 2 10000 1 0 0 Internet penetration and Per capita income, 2008

Broadband penetr tration A NALYSIS O UTPUT ………………I NTER - STATE B ROADBAND DEPLOYMENT AND ECONOMIC per 100 person ons 0.2 0.4 0.6 0.8 0.8 1.2 0 1 Andhra Pradesh Bihar Per Capita Income Per Capita Income Broadband penetration Orissa Broadband Penetration and Per Capita Income, 2008 Karnataka J&K Punjab Tamil Nadu WB and A&N Madhya Pradesh Rajasthan Delhi Uttat Pradesh penetration only Kerala has more Maharashtra than 1 North East Himachal Pradesh Gujarat Haryana Assam Kerala 0 20000 40000 60000 80000 100000 120000 140000 160000 Per Capita Income me (Rs.)

O UR C URRENT RESEARCH ON “I NDIA : T HE I MPACT OF B ROADBAND ” IS ADDRESSING SOME OF THE I SSUES T HANK Y OU !