The Indian e-commerce market will grow by nearly 50 per cent to touch INR 46,000 crore (nearly US$ 10 billion) this year, says an industry report. This growth is mainly driven by the online travel industry, which contributes more than three-fourths to the online commerce industry in India, says a report released recently by the Internet and Mobile Association of India (IAMAI). India's online commerce industry grew from INR 20,000 crore (nearly US$ 4.34 billion) in 2009, to almost INR 32,000 crore (nearly US$ 7 billion) in 2010.
More than 75 per cent of India's total e-commerce comes from its online travel market, which includes booking rail and air tickets, hotel accommodations and tour packages. That segment alone is expected touch INR 40,000 crore (nearly US$ 9 billion) by year end, said the report. The financial services market has also shown significant progress, the report said.
Online insurance payments and transactions through trading accounts grew from INR 1,540 crore (nearly US$ 334 million) in 2009, to INR 2,000 crore (nearly US$ 438 million) last year. It will grow at a clip of 34 per cent, touching INR 2,650 crore (nearly US$ 580 million) by yearend. Digital downloads and e-retailing are also growing rapidly, the report added.