India’s internet users expected to hit 900 Mn by 2025, rural adoption on the rise

Urban and rural users spend an average of 90 minutes daily on the internet, with time spent online being almost identical in both segments—94% in urban areas and 95% in rural areas

India is poised to surpass 900 million internet users by 2025, with rural areas contributing significantly to this growth, according to a new report by the Internet and Mobile Association of India (IAMAI) and Kantar, a market research firm. The report, which examines internet usage across the country, shows that a growing number of rural residents are gaining access to the internet, signaling a shift towards more inclusive digital participation.

Surge in internet usage across urban and rural India

Currently, approximately 732 million people in India are internet users, with 83% of them consuming digital content such as OTT videos and audio. The report also highlights other major use cases for the internet, including online communication, social media, and gaming. Rural India is seeing rapid growth in internet adoption, and one in five users in rural areas access the internet through shared devices, a trend that has grown by 24% since 2024.

Urban and rural users spend an average of 90 minutes daily on the internet, with time spent online being almost identical in both segments—94% in urban areas and 95% in rural areas. This growth is evident across all age groups, with more people connecting to the internet for a range of services.

Regional differences and the rise of non-traditional devices

The report also highlights significant regional differences in internet penetration, with southern states like Kerala (72%), Goa (71%), and Maharashtra (70%) leading in internet adoption. In contrast, northern states such as Bihar (43%), Uttar Pradesh (46%), and Jharkhand (50%) show slower rates of internet penetration, indicating disparities in access across the country.

Notably, the report notes a rise in the use of non-traditional devices like smartphones and connected TVs for internet consumption. Urban India leads with a 54% year-on-year growth in mobile internet usage, while rural India shows an even more impressive 107% year-on-year growth. This shift marks a significant change in how people access digital content, with many forgoing traditional television in favor of streaming services on mobile devices.

The e-commerce and AI surge

In terms of e-commerce, cash-on-delivery (COD) remains a popular payment method, with 105 million online shoppers opting for COD services. Additionally, the trend of "cord-cutting," or abandoning traditional TV services for online content, has gained traction, with 286 million people in India now relying on mobile or connected TV for their media consumption.

The increasing presence of artificial intelligence (AI) in India is also noteworthy. The adoption of AI-based technologies, especially in urban areas, is reshaping how people interact with the internet. Rural areas are quickly catching up as well, with more users utilizing voice-based commands and accessing content in regional languages.

With more people accessing the internet and digital services, India is heading toward a future where technology plays a central role in bridging gaps between urban and rural populations, propelling the country toward a more inclusive digital economy.