The Internet user base has registered a growth of 54 per cent with 38.5 million users as of 2005-06 from just 25 million in 2004-05. The findings of a survey done by Internet and Mobile Association of India (IAMAI) showed that more people are becoming net savvy and are harnessing the power of the Internet.

Currently, the total e-commerce market in India is estimated at Rs 11.80 billion (2005-2006) and by 2006-2007 online commerce is estimated to grow to Rs 23 billion, an over 100 per cent increase.

Commenting on the growth, Union Minister for IT and Telecommunications Dayanidhi Maran said, "The government is making concerted efforts with a clear emphasis on the importance of affordable broadband for the advancement of society and for the benefit of Indians, especially in rural and remote areas, which has encouraged more users to experience the powerful role of the Internet We are continuously evaluating policies, which will help increase competition and bring down prices as well as increase access speeds.”

IAMAI president Preeti Desai said, "Proactive government support and recurring online activities has driven more and more Indians to reach out to the Internet regularly. Indian consumers increasing net usage explains the whopping 54 per cent growth in online population and can be attributed to growing dependence on online communication, online content and e-commerce."

The diffusion of the Internet and its associated applications like e-governance, e-commerce, e-banking and e-learning, will play a crucial role in fueling the growth of the nation's economy. Internet significantly facilitates the process of development of nations and its citizens in all respects, be it economic, social, or cultural.

The impact of the broadband policy is evident from these growth figures. The policy has helped focus in on ushering Internet penetration right across the country with broadband prices as low as Rs 199 per month.

The study further stated that this Internet growth can also be attributed to the IT and Telecom Ministry's focused pursuit of introducing Rs 10,000 PCs, in association with hardware manufacturers, thereby enabling the common man to overcome the first hurdle of accessing the Internet

To overcome the hurdle of content in regional languages the IT and Telecom Ministry has already kicked off several initiatives towards development of language fonts, thereby removing language barriers and localising the content.

Reduction in license fees and revenue sharing agreement from 15 per cent to 6 per cent has enabled players like GailTel and RailTel and PowerGrid to come together to address the broadband growing demand, and their efforts will make Internet a household feature.

India is already witnessing a huge jump in VoIP traffic. This has been possible due to the liberalization of Telecom license fees and the legalizing of VoIP within networks. Going forward, VoIP will play a crucial role in increasing Internet user base and as competition grows, the VoIP will witness further lowering of rates, enabling more consumers to use the Internet for their benefit, the study added.

(http://www.indiantelevision.com)