India is set to cross 900 million internet users by 2025, with a significant number coming from rural India. According to a report by the Internet and Mobile Association of India (IAMAI) and Kantar, the number of active internet users in India reached 886 million in 2024, marking a robust 8 per cent year-on-year growth. Rural India, with 488 million users, leads this growth and now accounts for 55 per cent of the total internet population. This explosion in the user base is attributed to the increasing use of Indic languages for digital content.

Over half (57 per cent) of urban internet users prefer consuming content in regional languages, underscoring the growing demand for local language content across platforms, according to the report.

Impressively, artificial intelligence has emerged as a significant game-changer over the past year. Nine out of ten internet users have interacted with apps featuring embedded AI capabilities.

"The widespread acceptance and enthusiasm surrounding AI should encourage digital companies to introduce more next-generation AI features in India," said Biswapriya Bhattacharya, Director of B2B and Technology.

AI is becoming more popular in both cities and rural areas in India, offering new opportunities for growth and innovation. While people in cities tend to use AI more, rural areas are catching up quickly. Many people find AI tools useful for making them more productive and efficient. AI bots are helpful for answering questions, and personalized shopping recommendations save time.

People also enjoy using AI features, like image filters on social media, to stand out. Virtual assistants, such as chatbots on websites and apps, help solve problems faster. Tools like Alexa, Google Home, and Siri make tasks easier, and virtual try-on features on shopping apps are appreciated. Although some people still struggle with using AI and don't always trust AI bots, overall, AI is becoming more widely accepted and beneficial in India.

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On average, Indians spend 90 minutes a day accessing the internet. Urban users outpace their rural counterparts in terms of time spent online, reflecting greater connectivity and device availability in cities. Interestingly, rural India now has more internet users than urban areas, a testament to the growing accessibility of digital infrastructure across the country.

One noteworthy trend is the narrowing gender gap in internet usage. As more women come online, the demographic composition of internet users is becoming more balanced over time.

Internet Usage Across India

India's states show significant variations in internet penetration. The top three states leading this digital revolution are:

- Kerala: 72%
- Goa: 71%
- Maharashtra: 70%

These numbers demonstrate the increasing digital inclusion across regions with diverse socio-economic profiles.

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Popular Internet Activities

Across both urban and rural India, certain online activities dominate:

- Streaming OTT video and music content
- Online communication, including chats, emails, and calls
- Social media engagement

These activities have become universally popular, showcasing how the internet has democratised access to entertainment and communication.

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Key Trends in Internet Usage Behaviour

- More People Using Modern Devices: Many users are moving away from traditional media and using newer devices to access the internet.

- Rise of Cash on Delivery: Cash on delivery is becoming more popular, even though social media shopping is slowing down. In 2024, about 12% of internet users started shopping online and prefer paying with cash on delivery, but they don’t engage in other online transactions.

- Growth in Indic Language and Voice Usage: In 2024, 870 million internet users (98% of all users) accessed content in Indian languages. 57% of urban users prefer content in these languages.

- Changes in News Consumption: Most internet users get their news online through apps, websites, social media, and YouTube. But only 1 in 5 users regularly reads the news.

- AI Usage is Increasing: AI is becoming more popular in both cities and rural areas. Although people in cities use AI more, rural areas are catching up.

Non-Active Internet Users

Despite growing internet penetration, 41 per cent of India's population still does not access the internet. However, this group has been steadily declining over the years.

In rural India, 51 per cent of the population remains non-active internet users.

 

*With Inputs from Internet and Mobile Association of India (IAMAI) and Kantar Report*