The Internet services sector in the country, which currently employs around one million people, is expected to create 12 million new jobs by 2022, a report said Tuesday.

The sector, valued at $33.8 billion at present, is expected to reach $76.4 billion by 2022 in conservative estimates, according to the report titled 'Economic Impact of Internet Services in India' published by the Internet and Mobile Association of India (IAMAI).

The report also expects the number of Internet users in the country to increase 1.6 times from 481 million at present to 762 million in 2022 due to the proliferation of affordable Internet connectivity.

The number of smartphone users is also estimated to grow at 1.75 times to reach 526 million in 2022, it said.

On the technology and business side of the Internet services, the report said that the Internet will fundamentally change the way the needs, aspirations and demands of the consumers will be addressed.

"Pivoting on that, the Internet services sector is expected to see several of changes in the future," it added.

The report suggests that the sector can further reach up to USD 124 billion if certain critical factors are realised such as forward looking and supportive government policies, better infrastructure for widespread Internet connectivity, developed distribution network, among others.