DC Infotech & Communication Ltd Management Discussions

ECONOMIC OVERVIEW Global & India Scenario

According to the World Banks latest Global Economic Prospects report, Global growth is projected to slow for the third year in a row, from 2.6% in 2023 to 2.4% in 2024. This marks a decrease of nearly three-quarters of a percentage point compared to the average growth rate of the year 2010. Developing economies are expected to experience growth of only 3.9% in 2024, which is more than one percentage point lower than the average growth of the previous decade. Low-income countries are projected to achieve a growth rate of 5.5%, which is weaker than previously anticipated. Advanced economies are anticipated to slow down to a growth rate of 1.2% in 2024, down from 1.5% in 2023.

Important risks to consider include the persistence of inflation, escalating geopolitical tensions, and the possibility of additional trade restrictions, all of which could contribute to an increase in goods inflation. Despite these risks, the global economy has demonstrated resilience, with growth expected to remain stable at 3.2% in both 2024 and 2025, accompanied by a decrease in inflation. Looking forward to 2025, the global economy is anticipated to continue its recovery, at a gradual pace. Its expected that the focus will be on controlling inflation, enhancing trade, and putting structural reforms into place to promote more steady and inclusive economic growth.

Business and Commerce

India has seen a surge in smartphone and internet usage in recent years. Driven by the "Digital India" Program, the number of internet connections climbed dramatically to 830 million in 2021. Approximately 55% of all internet connections were made in metropolitan areas, and 97% of those connections were wireless. The number of smartphones has also grown dramatically, and by 2026, 1 billion are predicted to be in use. Indias digital economy has benefited from this, and by 2030, it is projected to grow to $1 trillion USD.

With a 33% compound annual growth rate, the Indian e-commerce market is projected to reach US$ 26.93 billion in 2027 from US$ 3.95 billion in FY21. Indias consumer digital economy is predicted to increase from US$ 537.5 billion in 2020 to US$ 1 trillion by 2030, primarily due to the countrys high e-commerce and edtech adoption. By 2025, Grant Thornton projects that Indias e-commerce would have a valuation of US$ 188 billion.

The Indian government has launched a number of programs since 2014. These include the Digital India, Made in India, Start-up India, Skill India, and Innovation Fund programs. E-commerce is expected to increase in India as a result of initiatives under the Digital India movement, such as the call for startups to register at GeM, the increase in the maximum amount of foreign direct investment allowed in e-commerce marketplace models, the Open Network for Digital Commerce (ONDC) to systematize the onboarding process of retailers on e-commerce platforms, and significant investment in the rollout of fiber networks for 5G.

Source: https://www.ibef.org/industry/ecommerce