According to a survey by the Internet and Mobile Association of India (IAMAI), formerly known as the Internet and Online Association of India, the Internet user-base has registered a whopping 54 percent increase, from just 25 million people in 2004-05 to 38.5 million this year.

The IAMAI estimates the country's e-commerce market to grow by over 100 percent, up from Rs 1,180 crores in 2005-06 to Rs 2,300 crore in 2006-07.

Following the government's new policy, broadband prices have plunged to as low as Rs 199 per month; also reduction in license fees and revenue sharing agreement from 15% to 6% has enabled new players like Gailtel, Railtel and Powergrid to foray into broadband. Further with the government introducing affordable PCs priced at Rs 10,000 ($216) the internet usage has become wide-spread in the country.

Preeti Desai, president, IAMAI, said, that the 54 percent growth in online population in the country, can be attributed to the growing dependence on online communication, online content and e-commerce.

Desai said that in addition to the 18-35 group, who are pre-dominant consumers of the Internet, the 45-65 age group is also jumping onto the internet band-wagon. She said that e-mail and chat have become a daily routine of online Indians, with banking accounting for 32 percent use, bill payment for 18 percent, stock trading 15 percent, job search 51 percent and matrimonial search for 15 percent use.

The report says that the ".in" domain has received 150,000 registrations so far and it also expresses satisfaction over the VoIP traffic.