The “Digital” Contribution



As the news of the YouTube contribution to the Indian GDP headlined the newspapers, it was quite obvious that it would catch eyeballs all across the country. This news not only makes us optimistic about the future but with it shows us how a planned move by the government can really make things happen in such a large and diverse country where emphasis on secure job is very high.

The Big News

image source: Youtube

YouTube creator ecosystem contributed Rs 6800 crore to Indian GDP

This piece of article can’t just be read and forget, this is huge signal as to how the jobs in future mainly would be. For many people this news can be amusing to how something which they see as time pass thing is actually contributing so much to the GDP.

For the people who want to know the substance of this news, this article is for them. It doesn’t only explain how the things have panned out but also directs where it is taking us through. For digital enthusiast like me, it is changing the perspective of youngsters as how they see the world, how they see a job and what is the importance of independence in their lives.

How it all started

YouTube is online video sharing and social media platform which was launched in 2005. Just after one year, in 2006, it was acquired by Google for 1.65 million dollars. Interestingly, when google bought YouTube they denoted YouTube as “the next step in the evolution of Internet”. Today YouTube is the second most visited website right after google itself.

                                                            The AdSense Acquisition

In March 2003, Google acquired Applied Semantics, a company which offered AdSense program for content creators, like blog writers. With this launch they could earn money by displaying ads on their web pages. The basic idea was to serve “content targeted advertising” .It means the ads will be served based on the interest of the user. So, for example, if I am very fond of bikes and always like to search about them on the web, google will try to show bike ads on its search pages whenever I am surfing the web. Even if I visit a site which is not primarily related to bikes, bike ads will start flashing.

For non-technical background people, it is done with the help of cookies, the web servers create small data files on our computers called cookies when we access a website. This data file automatically informs the web browser when we revisit the website. One simple example can be when we add an item to the cart in an ecommerce website and close the website and revisit again, we will find that the item is still shown in the cart.

The Idea Behind AdSense

It was a very revolutionary idea as the concept of showing ads according to the need of the end user was new to the industry.

So, the same website, which showed me ads of bike according to my interest will show you ads of beauty products if you like them and often search about them on the web.

By early 2005, AdSense accounted for estimated 15% of Google’s total revenue. Susan Wojcicki, current CEO of YouTube is regarded as one of the major contributors in the development of AdSense.

The Grand Integration

Image by John Hain from Pixabay

As YouTube was revolutionary video sharing platform it was time for google to reap the fruit. In 2007, YouTube launches its partner’s program to enable content creators (those who shoot, edit & upload videos on YouTube) to make money from the videos they make and upload.  It was done with the help of showing ads to the viewers of that YouTube channel.

With this move, creators could actually move their hobbies into profession. Just keep in mind the headline of this article “The Digital Contribution” as you read this article and you will know how revolutionary it was going to be in the next two decades in the Indian context.

The Jio Data Revolution

Although, YouTube AdSense Partner Program was working very efficiently in many countries around the world but it was only after Jio revolution, it sky rocketed in India. Let’s compare the average cost of 1 GB data pack rates in India.

Pre-Jio launchRs 225/GB
Post-Jio launchRs 18.5/GB
data rates before and after jio

Reliance Jio Infocom Limited, roughly called as JIO commercially launched its 4G services on 5 September 2016. It offered free data and voice services till 31 December, to whoever bought a new sim card of JIO. The offer was further extended till 31 March 2017. The company crossed 5 crores (50 million) subscribers mark in just 83 days since its launch. Presently, there is approximately 50 crores (500 million) subscribers of JIO. It is highest in the country leaving behind Bharti Airtel & Vodafone Idea Limited.

Impact of Jio Revolution

As the high-speed internet data rates get cheaper it was quite obvious that smartphone reached the marginalized and lower income families. This spark was needed, as it would open for them a gate to the virtual world. A world which they were never a part of.

They started by consuming content, playing games and doing endless video calls with their friends and relatives. Then they started learning new activities from the web. As they say “a picture is worth a thousand words”, video format become the best medium to gather information.

YouTube became the platform for everyone, a non-reputed singer from Bengal, or a simple Math teacher from Bihar or a home designer from Bangalore. Many professionals which were not popular started their careers on YouTube. Watching them earning handsomely from the YouTube, more people joined the bandwagon. It was only a matter of time that people from small villages and tier 2 and 3 cities too started to make content on YouTube.

From Food Vlogger to travel vlogger to the video game streamer, new professions also started getting fame and money. Not just they were doing anything on social media, they were helping the masses in many ways. How to book an online flight ticket or how to cook tasty recipes. They are finding solutions to problems which we discuss with our friends and relatives.

What’s Next

This creator ecosystem will now propel many individuals to work freely. To work on their terms without needing to obey someone even if they disagree with them. This is what freedom looks like.

Now the creators are not just limiting themselves to creating content for YouTube only. When they really know that what they do is helping people, they have started launching courses. Yes, there is also increase in fraud cases, but whole idea of this article is to show the bright side of it.

YouTube has helped the GDP indirectly too. Suppose a travel blogger recommends people to visit Manali or Kashmir by showing picturesque videos of the places in his vlogs. His subscribers would definitely consider his recommendations next time when they will plan their holidays. This also helps to increase the income of the local people in those tourist places.

New entrepreneurs are generating even more revenue and helping the government with more contributions to the GDP.


As the anticipated news popped in the renowned newspapers, it was a quite obvious that unemployed youth of the country will look towards it. It is not just another “news”, it could be game changing in the development of the country as more and more students understand the importance and value of skill driven professions. The pressure of cut throat competition to get into named universities will also get reduced. It will give youngsters a chance to showcase their talent to the world and earn a living through it.

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