According to a report by Boston Consulting Group along with The Indus Entrepreneurs, India's Internet economy is expected to double to $250 billion by 2020.

The report says, with 391 million users, India has already become the second highest country in terms of mobile internet users and this is expected to grow rapidly to 650 million mobile internet users by 2020. While data consumption could potentially increase 10-14 times by 2020.

"It is essential to understand the three forces that are now synergizing to unlock internet consumption in India," said Nimisha Jain, a BCG partner, and report co-author.

Jain said, "firstly, by 2020, 4G enabled devices are expected to grow 6 times to 550 Mn devices, constituting 70 percent devices in use. Secondly, reliable high-speed data is becoming both ubiquitous as well as mass affordable (data rates have reduced to less than one-third in just 4-5 months). Lastly, digital content is proliferating as well as improving in quality, thus driving consumption."

SEE ALSO: TRAI explains reason behind canceling Jio's new offer

The report reveals, "while so far mobile internet users have proliferated and smartphone users have gone up by 4 times, high-speed internet users have still been limited only to 56 percent.

However, the report added that average data consumption per user continues to be low, standing at less than 1 GB data per month vis-a-vis developing economies like Indonesia and Brazil at 2-3 GB per month and developed economies like Japan and US at 9-11 GB per month.

Geetika Dayal, executive director of TiE Delhi-NCR said, "The conversation has moved from 'Internet of Things' to 'Internet of Everything', and digitization presents a great opportunity for multiple stakeholders."

The report said all digital services  will grow alongside. For example, digital payment transactions could go up by 30 percent to 40 percent by 2020.

"Digital economy will have a much broader influence beyond the direct economic impact. Digital adoption will deliver several citizen-centric social benefits like enhancing ease of doing business, improving access to services and products and transforming governance," the report said.