The rapid penetration of smartphones in India is redefining mobility to create a connected nation. Mobile phone today, in the words of economist Jeffrey Sachs, “is the single most transformative tool for development.” With increasing smartphone penetration and rapidly growing Internet users, India has moved at a phenomenal pace towards digitization. Currently, nearly 74% of the population have mobile phones, most of which though is in the hands of urban India.
Let us backtrack a bit and understand what this implies. There have been many studies conducted in various countries across the globe that show a positive correlation between mobile penetration and GDP growth. Findings reveal that every 10% increase in mobile penetration rate leads to a 1.2% increase in GDP. This impact may be twice as large in developing countries as in developed countries.