Bengaluru

India’s internet user base crossed the 950-million mark in 2025, powered by rapid digital expansion in rural areas, rising consumption of short-form video content and the growing use of artificial intelligence tools, according to a new industry report released on Thursday.

The Internet in India Report 2025, jointly prepared by the Internet and Mobile Association of India (IAMAI) and market research firm Kantar, estimates that the country now has about 958 million active internet users, reflecting nearly 8 per cent annual growth and underlining India’s position as one of the world’s largest digital markets.

A key highlight of the report is the growing dominance of rural India, which now accounts for 57 per cent of active internet users, or roughly 548 million people. Rural user growth is occurring at nearly four times the pace seen in urban centres, signalling a decisive shift in the geography of digital adoption.

The findings were unveiled at the India Digital Summit in Bengaluru, in the presence of Manjula N, Secretary to the Karnataka government’s Department of Electronics, IT/BT and Science & Technology.

According to the study, artificial intelligence has entered the mainstream, with 44 per cent of users engaging with AI-powered features such as voice-based search, image recognition, chatbots and AI filters. Younger users are driving this trend, with usage reported by 57 per cent of those aged 15–24 and 52 per cent of users between 25 and 44 years.

Short-video platforms have emerged as another major engine of engagement. In 2025, around 588 million users, or 61 per cent of India’s internet population, consumed short-form video content. Rural users marginally outnumbered urban viewers, while adoption remained strongest among younger audiences.

IAMAI said changing consumption habits are also reshaping online commerce. Quick commerce platforms are leading a transformation in digital shopping, with social commerce rapidly gaining ground alongside conventional e-commerce marketplaces.

In urban areas alone, about 230 million users—or 56 per cent of the urban internet base—made online purchases in the past year, reflecting growing comfort with app-based, rapid-delivery shopping models.

The report also noted a steady rise in multi-device internet usage, with 193 million users now accessing the internet through more than one device, accounting for 20 per cent of all active users, up from 165 million in 2024. While multi-device penetration remains higher in cities at 31 per cent, rural adoption is steadily increasing at 12 per cent.

Shared device access continues to play a crucial role in digital inclusion, especially in rural India. Around 18 per cent of internet users access the web through someone else’s mobile phone, and nearly four out of five such users live in rural areas, the report said.

Despite the rapid expansion, a significant digital gap remains. About 38 per cent of India’s population, or roughly 579 million people, are still not active internet users. However, the report noted that this share has been declining consistently each year, indicating substantial scope for further growth of India’s digital economy.

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The 2025 edition of the report is based on a nationwide survey of nearly 100,000 respondents across more than 400 towns and over 1,000 villages, providing one of the most comprehensive snapshots of India’s evolving internet landscape.