75 Crore Users and Growing: How India’s Expanding Internet User Base Is Powering Market Growth

India has emerged as one of the world’s most vibrant and fast-growing digital markets, with over 75 crore internet users as of 2025.

India has emerged as one of the world’s most vibrant and fast-growing digital markets, with over 75 crore internet users as of 2025. This impressive figure positions India as the second-largest internet user base globally, only behind China. The rapid rise in internet usage in India is a key indicator of the expanding digital economy, which in turn presents new opportunities and challenges for investors.

In this article, we will explore the factors driving India's internet growth and how this expanding user base is impacting sectors and companies listed on the Indian stock market.

The Digital Growth Drivers in India

India’s internet growth story is fuelled by several factors:

1. Affordable Smartphones and Data
   The affordability of smartphones and cheap data plans has played a crucial role in democratizing internet access across the country. Over the past few years, the cost of mobile data has dropped significantly, and India is one of the most affordable markets globally for mobile data usage. This has led to an increasing number of users accessing the internet, particularly in rural areas.
2. Government Initiatives
   The Indian government’s Digital India initiative, launched in 2015, aims to improve online infrastructure and increase internet penetration in both urban and rural areas. This initiative has made strides in improving broadband connectivity and digital literacy, providing a robust foundation for the growth of internet-based services.
3. Rise of E-commerce and Social Media
   The Internet has become the backbone for industries such as e-commerce, social media, and digital payments. As more people go online, the demand for these services increases, creating a thriving digital economy.
4. Urbanization and Mobile-First Culture
   The rise of urbanization and the mobile-first culture, especially among younger generations, has contributed significantly to internet usage. India’s young population is particularly active on social media platforms, online gaming, and digital entertainment, all of which are major drivers of internet engagement.

The Stock Market Impact: Sectors Set to Benefit

The exponential growth in internet users in India is generating a ripple effect across several sectors. As more people access the web, new opportunities are emerging for businesses, which can translate into lucrative prospects for investors.

1. E-Commerce and Online Retail

India's e-commerce sector has witnessed explosive growth due to increasing internet penetration. The rise of platforms like Flipkart, Amazon India, and Myntra has been facilitated by the increasing number of internet users, especially in Tier II and Tier III cities. As more consumers move online to shop for goods ranging from electronics to fashion and groceries, e-commerce platforms are seeing significant growth.

Stock Market Opportunities:

• Flipkart’s parent company, Walmart, is a significant player in the Indian e-commerce market.
• Reliance Industries (with its JioMart platform) and Tata Group (with its expanding digital ecosystem) are also major contenders in this sector.
• Zomato and Swiggy, with their online food delivery platforms, have seen an uptick in demand as more users order food online.

2. Digital Payments and Fintech

India’s digital payments market has undergone a massive transformation, driven by the government's push for cashless transactions through initiatives like UPI (Unified Payments Interface). With the internet revolutionizing how people pay for goods and services, fintech companies are at the forefront of this shift.

Stock Market Opportunities:

• Paytm, PhonePe, and Google Pay are leading digital payment providers, benefiting from India’s rapidly growing mobile payment ecosystem.
• ICICI Bank, HDFC Bank, and Axis Bank have also expanded their digital banking services to tap into the increasingly internet-savvy customer base.
• Investors might also look into Bajaj Finserv and SBI Cards, as credit card usage and online lending are growing in popularity.

3. Telecommunications

The increasing number of internet users in India has significantly impacted the telecommunications sector. With data consumption on the rise, telecom giants are positioning themselves to meet the growing demand for mobile internet.

Stock Market Opportunities:

• Reliance Jio, led by Mukesh Ambani, continues to dominate India’s telecom market. Jio's affordable data plans and growing infrastructure are a huge advantage as more users go online.
• Bharti Airtel and Vodafone Idea are also significant players in the space, competing for market share and expanding their 4G and 5G networks.

4. Social Media and Digital Advertising

Social media platforms are some of the most popular services among India’s internet users. As India’s digital population grows, companies are increasingly spending on digital advertising to tap into this vast audience. The advertising sector has seen a shift from traditional media to online platforms like Google, Facebook, Instagram, and YouTube.

Stock Market Opportunities:

• InMobi, an Indian mobile advertising and marketing platform, has become a significant player in digital advertising and is benefitting from India’s rising number of internet users.
• Tata Communications, Zee Entertainment, and Den Networks are also prominent players in digital content and media, capturing a growing share of the digital advertising revenue in India.

5. Online Entertainment and OTT Platforms

With more internet users consuming digital content, the demand for online entertainment has skyrocketed. Streaming services, including Netflix, Amazon Prime Video, Disney+ Hotstar, and local players like ZEE5 and Sony LIV, are gaining traction across India.

Stock Market Opportunities:

• Zee Entertainment and Dish TV are well-positioned to benefit from this shift towards digital entertainment.
• Reliance Industries, with its JioCinema platform, is positioning itself to capture a larger slice of India’s online video streaming market.
• Investors may also consider Tata Elxsi and Brightcom Group, which are involved in the digital media and technology space.

Risks to Consider for Investors

While India’s digital boom presents immense opportunities, investors must also be aware of several risks:

• Regulatory Risks: The Indian government’s regulatory framework for digital platforms is evolving, and changes in data privacy, cybersecurity, and e-commerce laws could impact the business environment.
• Competition: As more players enter the digital space, competition can become fierce. Companies with strong brand loyalty and vast customer bases are more likely to succeed, but newer entrants may struggle to capture market share.
• Infrastructure Challenges: Although India has made strides in improving its digital infrastructure, there are still areas with limited access to high-speed internet. This could limit the potential growth in some regions.

Conclusion: The Future of India’s Internet Economy

With over 75 crore internet users and growing, India is positioning itself as a key player in the global digital economy. For investors, this presents a unique opportunity to capitalize on the growth of e-commerce, fintech, telecommunications, and digital media. While risks exist, particularly in regulatory and competitive landscapes, the overall growth trajectory of India’s internet economy remains promising.

As internet usage continues to climb, sectors that capitalize on digital trends are set to see significant growth. For investors with a keen eye on emerging digital markets, India offers abundant opportunities, but careful research and strategic diversification will be essential for long-term success.