The country will have over 500 million internet users by 2017 as compared with over 350 million as of June 2015, 'India On The Go - Mobile Internet Vision Report 2015' pointed out.
The report by Internet and Mobile Association of India (IAMAI) and KPMG said 2G user base in India is projected to decline in the coming years as more and more customers are expected to migrate from 2G to 3G.
The 3G user base in India is rapidly gaining market and is projected to grow at a compound annual growth rate (CAGR) of 61.3 percent from 2013-17.
There were approximately 82 million 3G subscribers in India by the end of 2014 and the number is projected to reach 284 million by end of 2017.
"It is imperative to connect Indians through the internet, of which the mobile internet will play a key role since reliable accessibility will be the killer app that will bind the internet ecosystem together, increase adoption and enable innovation in business models around voice and data services," Ashvin Vellody, partner - management consulting, KPMG, India, said.
"While the urban market has not reached its saturation point, it will be non-metros and rural India that will be driving the internet growth in India. And this is where mobile internet will play a pivotal role," Subho Ray, president, IAMAI, said.
"The advent of low-cost smartphones, coupled with low mobile tariffs, has empowered consumers in the hinterland to use data connectivity and we will seeing more usage of internet from these areas in the months to come," he added.