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‘Online platforms could contribute Rs 2.49 l cr to Internet economy by 2015’

The Hindu BusinessLine:  March, 2014

New Delhi: Online platforms that support user-generated content can become an important part of India’s Internet economy and contribute around Rs 2.49 lakh crore by 2015, in addition to the contribution of other elements of the Internet economy, a global report said on Tuesday.

According to the Global Network Initiative (GNI) report – ‘Closing the Gap: Indian Online Intermediaries and a Liability System Not Yet Fit for Purpose’ — this would mean that two years from now their GDP contribution would increase to more than 1.3 per cent.

However, this would depend on the current legal liability regime being improved, the report prepared by Copenhagen Economics (for GNI) said.

Additionally, the positive productivity effects of online intermediaries will be significant, creating an even greater impact in India in areas such as e-sales and e-procurement compared to their impact in Europe or the US, it said.

“With India emerging as one of the fastest growing Internet user markets, our report aims to bring to light the importance of providing protection to Internet intermediaries in India in order to create an environment that is conducive to promoting innovation and economic opportunity,” Jermyn Brooks, outgoing Chair of the GNI Board, said.

GNI is a multi-stakeholder group of companies, civil society organisations (including human rights and press freedom groups), investors and academics dedicated to protecting and advancing freedom of expression and privacy in the Information and Communication (ICT) sector.

Copenhagen Economics is a Europe-based economic consultancy with expertise in regulation, competition and trade.