According to JuxtConsulting:

Random Guy on Phone

• There are 35 M internet users in India (people who use internet more than once a month). 90% of them use internet daily.
• All but 5 M of these are in urban areas.
• This means that 9% of Indian urban population uses internet at least once a month.
• Indian regular urban internet users grew at 19% compared to last year.
• 72 % of internet users have a computer at home.
• Most common activities on the net are email, job search, IM, News, Sports, downloading music or movies, social networking and matrimonial search, in that order.
• 34% of users visit vernacular content regularly (compared to 12% last year).
• YonY growth is linear not exponential, as we hoped.

India Online Market

• India has 8m active online shoppers. (those who have purchased something online in last 6 months)
• About 24% of them have never bought anything besides railway tickets. 49% of them have bought nothing but air or train tickets.
• Books, clothes and CD/DVDs are the other big selling categories.

More at IBEF .