India's great digital wave offers opportunities and raises some questions

WHAT does a combination of a massive under-30 population and a surge in connectivity lead to? An unimaginable explosion of digital opportunities. India is in the midst of the beginning of this huge tide. Steep rises in smartphone sales, the vast youth population that is unafraid of trying out new online services, and rapid increase in net connectivity are creating an industry storm.

Consider these. India's smartphone sales are clocking 26.5 million units a quarter. Subscribers have leapfrogged from traditional clamsets to smartphones in a two-three year transformation cycle. After capturing the markets in major cities, the smartphone players have dived deep into tier II and tier III cities. There are currently 10-12 models available right from sub-US$100 to US$1,000 and there is no affordability debate. Apps and online services have increased manifold in parallel.

Indians are shopping online or via apps for clothing, shoes, lingerie, groceries, air tickets, train tickets, mobile phones, white goods, furniture, books, toys, education materials, fashion accessories, cakes, bread, medicines, cosmetics and even liquor. Services or bookings for services include car hire, car rental, salon, tuition, holiday packages, tickets for events, food services, plumbing services, etc. Other online services used include special areas like astrology, private health consultation (psychiatry, sex counselling), matrimonial services, online learning and priest services. Consumer-to-consumer or C2C e-commerce has also sprouted. Like in other developed markets, online banking and funds transfer are on the rise.