Indian Economy News

Indian e-commerce market expected to touch US$ 220 billion Gross Market Value (GMV) by 2025, as per BofA-ML report

  • IBEF
  • November 10, 2015

New Delhi: India's e-commerce market is expected to reach US$ 220 billion in terms of gross merchandise value (GMV) by 2025, as per a Bank of America Merrill Lynch (BofA-ML) report. According to the report, the rapid growth will be driven by increase in the number of online customers to 530 million, as a result of improving telecom infrastructure (faster and reliable 4G networks) and faster adoption to online services coupled with better variety and convenience. BofA-ML expects structural changes in consumer usage patterns, with increasing number of customers opting to buy online over traditional retail stores. The report further added that e-commerce companies Flipkart, Amazon, Snapdeal are likely to dominate the market. Online festive sales this year were three to four times higher as compared to last year. The online customer base has broadened with about 50 per cent of the sales coming from outside top six cities (as per Canvaas-India survey), and also e-commerce companies Snapdeal and Amazon reporting more than 60 per cent of their traffic from tier-II and tier-III cities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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