India had as on September 2008 45.3 million active internet users. This is according to the I-Cube [Internet in India] Study released today and conducted annually by IMRB International and Internet and Mobile Association of India [IAMAI]. Active internet users are those who have used the internet at least once in the last one month – this is an internationally accepted benchmark for enumerating internet users.

Urban users continue to dominate internet use contributing to 42 million of the 45 million odd users. In September last 2007, the number of active internet users in urban India was 36 million showing a year on year growth of less than 13 per cent. Commenting on the study Dr Subho Ray, president, IAMAI, said, “the growth rate was alarming compared with the rest in past years as well as with some other countries notably v where the number of internet users are more than 250 million”

The study also found that the number of “claimed” internet users in September 2008 was 57 million compared with 48 million in September 2007, recording a less than 10 per cent growth. Claimed users are those who have used the internet sometime but not in the last one month.

The time series data since 2001 captures this definite slow down in the growth rate of internet users in India.

The proportion of internet users to the total population above the age of 12 and proportion of internet users to the total literate population is also not very encouraging as shown in the tables below.

The survey also interviewed the claimed users on the lack of internet user and found there are five main barriers to internet use in urban India. The main reason for lack of internet use was found to be lack of awareness of the use of the medium.

Commenting on the study Mr. Mohan Krishnan, Senior Vice President BIRD, a specialized unit of IMRB International said “Continuing niche growth of the Internet is forcing two major realisations that need to be acted upon. Firstly, with majority of urban literates challenged due to the barrier of English language, there needs to be a strong push in vernacular/local language provision over the Internet. In these markets, in addition to localised content, online applications that matter individuals in their daily lives are needed. At the same time, untouched vast rural markets need to be tapped. However, enabling content for such markets highly depends on

The urban survey was conducted in the following cities

About IAMAI

The Internet & Mobile Association of India (IAMAI) is a not-for-profit industry body registered under the Societies Act, 1896.  Its mandate is to expand and enhance the online and mobile value added services sectors.  It is dedicated to presenting a unified voice of the businesses it represents to the government, investors, consumers and other stakeholders. The association addresses the issues, concerns and challenges of the Internet and Mobile economy and takes a leading role in its development.

For further queries please contact: Mr. Mehul Gupta AVP, Tel: +91-11-4657 0328 /9810375413 or write to mehul@iamai.in

Established in 1971, IMRB International is a pioneer in market research. A member of the Kantar Group, WPP's information, insight and consulting division. IMRB's footprint extends across 11 countries - India, Pakistan, Bangladesh, Sri Lanka, Dubai, Saudi Arabia, Egypt, Singapore, Malaysia, Korea and London.

With over 1200 full time staff, IMRB provides high quality conceptualization, strategic thinking, execution and interpretation skills. IMRB International is the only research company in India that offers such a wide range of research based services to its clients. IMRB International's specialized areas includes consumer market research both quantitative and qualitative, industrial market research, business to business market research, social and rural market research, media research, retail research, and consumer panels.

For further queries please contact: Ms. Seema Saini Head-Corporate Communications Tel: +91-22-2423 35 26 /9820626170 Fax: +91-22-2432 48 70 or write to seema.saini@imrbint.com