India's smartphone users likely to reach 650 million by 2022, says EY

India's digital economy is expected to grow to $1 trillion and lead to the creation of 10 million jobs by 2022

Smartphone users in the country are expected to reach 650 million and average data usage touch 18 GB per day by 2022, consulting firm EY said on Friday.

EY said the advent of 5G -- a new technology that promises faster data speed -- is expected to support newer applications, imbibe innovative business models and usher in cross-industry collaboration.

"By 2022, India is likely to transition to a Gigabit society where citizens and businesses will equally benefit from widespread fast-broadband, reliable performance delivered by robust future-proof fixed and mobile technologies," it said in a statement.

By 2022, smartphone users are expected to more than double to 650 million, elevating average data usage by over five times to 18 GB per month, according to EY.  

As per the statement, Internet of Things (IoT) has the potential to deliver major social and environmental benefits in sectors like agriculture, automotive and transportation, healthcare, power and utilities.

"India can lead the Fourth Industrial Revolution. The real opportunity is to look beyond technology and find ways to give the greatest number of people the ability to positively impact their families, organisations and communities."

"At the back of this, India has the potential to unlock a trillion dollar digital economy by 2022 and add up to 10 million jobs," Prashant Singhal, Emerging Markets TMT Leader at EY, said.

By 2022, India's digital economy is expected to grow to $1 trillion and lead to the creation of 10 million jobs, it said. 

A report by KPMG-IMC painted a similar picture stating digital economy in India is expected to reach $1 trillion by 2022 and $1.8 trillion by 2025.

The report highlighted that mobile data usage in India is expected to further surge 5 times by 2023. This would further witness digital diversity in the online audience taking it from the current 225 million in FY18 to 550 million by FY23, it added.

In a statement, Purushothaman KG, Partner - TMT Advisory at KPMG in India, said that despite some of the challenges faced by the ecosystem, India is the fastest growing and second largest telecom market in the world.