Internet is changing our lives, the way we work, shop, search for information, communicate, and meet people. Two billion people are now connected to the internet, and this number is growing by 200 million a year. But the magnitude of the economic impact of internet-related activities is not obvious.

A new McKinsey study finds that the internet has delivered significant economic growth, created swathes of jobs and created wealth.

Using an approach based on internet-enabled consumption patterns by individuals, businesses, and governments, the study finds that the internet contributes more to GDP than agriculture, energy, and several other traditional sectors do in many countries.

In India , the internet contributed 5% to GDP growth in the past 5 years compared with the average 3% for Bric economies, says the study.

Here is how internet contributes to growth:

Companies are able to keep costs down, target customers better and bring goods and services to markets around the world much more easily.

Individuals are able to compare prices, search hard-to-find items or information, communicate and learn in new, improved ways.

Governments can serve citizens much more quickly and at a much lower cost through e-governance.