Employment In India’s App Economy To Double By 2016


With the number of jobs in India created by apps possibly reaching the figure of 600,000 by 2016, the country is looking at moving from e-governance to m-governance.

App Economy


App economy to double the employment

According to the President of the IAMAI,

“India’s app economy is at the cusp of exponential growth; and along with app economy, India’s mobile ecosystem is also thriving”.

A study, titled ‘An Inquiry Into The Impact Of India’s App Economy’, was published by ICRIER (Indian Council for Research on International Economic Relations) and supported by IAMAI (Internet and Mobile Association of India).

The study estimates that direct employment in the industry is to be doubled from 75,000 jobs at present to nearly 160,000 by 2016. Also, if downstream jobs such as sales and marketing and customer sales management are also considered, then the numbers could be more than 600,000 by 2016.

According to the report, Smartphone penetration in the country is estimated at less than 20%. The country experiences 100 million downloads a month, placing it amongst the top 5 regions for Google Play, as per the officials at the Android App Store.

Also, the number of 3G consumers in India is expected to increase from 35 million in the year 2012 to 272 million by 2017. India also significantly contributes to the app development, with around 10% of apps worldwide are developed by Indians, either based at home or abroad, the report said.

Key points in the report:

The report illustrates four scenarios determining the range of potential employment, which can be generated by the app economy in the country. These are:

1. Business As Usual (BAU) with no regulatory intervention

2. Mature Industry (MI) with high Smartphone penetration and data usage

3. Government Intervention (GI) providing digital infrastructure enabling demand

4. Aggressive Government Intervention (AGI) and Mature Industry (IM) playing pivotal role

The multiplier values increase progressively across the four aforesaid scenarios. The minimum estimated increase in both direct and indirect employment is 91,476; while the maximum is 159,618. And, if induced employment is also taken into account, then these numbers rise to 221,067 and 604,867 respectively.

As per the NASSCOM Strategic Review 2015, the country’s mobile app industry is helping drive e-commerce adoption in India through emergence of mobile rich interfaces, mobile transactions and affordable and convenient mobile payment.

The Communications and Information Technology Minister, Ravi Shankar Prasad said that, ‘App economy is also impacting e-commerce along with emergence of newer areas enabling mobile ecosystem’.

According to Nilotpal Chakravarti, IAMAI Associate Vice President,

‘E-commerce players are constantly striving in creating and offering the best shopping experience for their users on mobile app’.

He further added that, ‘Apps will going to play a major role, whether in retaining customer or in acquiring new ones; and hence the usability, speed and design of an app will be critical’.

Source: ZDNet

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