India to add 300 million internet users by 2018: Facebook study

India would add close to 300 million internet users by 2018 to make up an online population of just under 500 million people, according to a new report.

Internet adoption in India is showing steady growth, but currently it is only 15%, said the report published by McKinsey & Company and Facebook.

Expansion of mobile coverage, urbanization, dropping data and device prices, growing middle class and the increasing utility of internet will drive growth.

From 2008 to 2013, the country's internet population has grown by 30% CAGR and by 2013, about 189 million Indians were online, the report said.

Nearly a third of the non-internet using population come from rural areas, 43% of them are illiterate and 54% of them are female, said the report published ahead of Facebook co-founder Mark Zuckerberg's visit to India in this month.

During Zuckerberg's visit to India between October 9-10, he will speak at the Content and Usability Summit hosted by Facebook-promoted Internet.org.

The report pointed out that low income was one of the key barriers to internet adoption.

"Our consumption basket analysis revealed that even with the low absolute prices of devices and data plans compared with the rest of the world, internet access in India remains beyond the grasp of close to 950 million people," said the report which assessed 25 countries.

India's literacy rate, at 62% is also a barrier to internet adoption. "Even if India's rural and illiterate population were to gain access to sufficient coverage, they would still need to obtain basic literacy and digital skills before they could navigate the web," the report pointed out. It also added that the lack of infrastructure is another barrier to internet adoption.

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