According to the study, India: The Impact of Internet, if Bihar had half as many internet subscribers as in Punjab, it would have resulted in an increased growth of over 7 per cent in the State per capita income study.

States with higher penetration rates show a greater growth with the developed States (having higher per capita income and level
of internet penetration) will grow at 2.36 per cent for every 10 per cent increase in the number of internet subscribers. The study was sponsored by the Internet and Mobile Association of India (IAMAI) and the Department of Information Technology.

Releasing the report, R. Chandrasekhar, Secretary, Department of Telecommunications said after mobile telephony, broadband was the next

revolution India awaited. He said the emphasis was on the providing broadband to 250,000 Panchayats by extending the optic fibre from the district or the block level. For this the government has earmarked Rs 20,000 crore and established a SPV to execute it.

Since India has low internet penetration levels, it has a lower growth dividend for internet than for mobile (1.08 versus 1.5). Increased internet penetration will add significantly to State level growth demonstrated by the growth impacts seen for the relatively developed States.

The study Internet for social development points out that internet and broadband are expected to make significant contribution to economic and social development in India over the next five years, the study estimates that slow movement of coverage had cost India over 100 billion Dollars in its gross domestic product (GDP) over the past decade. For every 10 per cent increase in internet and broadband penetration, India could potentially add 17 billion Dollars in the GDP, the research has said.

The study suggests that public resources should be applied to increasing levels of internet usage and
overcoming demand side obstacles, besides creating a core network of optical fibre throughout the country on an urgent basis.

The report also traces the path ways of economic and social impacts for internet at the micro level through 17 cases studies across 7 impact areas: agriculture, health, education, technology, training and employment, e commerce/BPOs, financial inclusion and community development. These case studies show that internet promotes efficiency.

on a scale and speed that was previously unimaginable and that the opportunity cost of absence or disruption of access can be very high.

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