E-commerce Industry in India

Indian e-commerce is expected to grow at a compound annual growth rate (CAGR) of 27% to reach US$ 163 billion by 2026.

Advantage India

Growing
Demand

* The Indian Beauty and Personal Care (BPC) market is experiencing rapid growth, projected to reach a GMV of Rs. 2,60,610 crore (US$ 30 billion) by CY27. This represents 5% of the global beauty industry. The market is expanding at an annual growth rate of around 10%, making it the fastest-growing BPC market among major economies. ​

* India's Business-to-Business (B2B) online marketplace would be a US$ 200 billion opportunity by 2030.​

Attractive
Opportunities

* India's e-commerce platforms achieved a significant milestone, hitting a GMV of US$ 60 billion in FY23, marking a 22% increase from the previous year.​

* In FY23, social commerce significantly transformed traditional retail and e-commerce in India, with projections indicating a growth rate of 31% CAGR, reaching US$ 37 billion by FY25.​

* The Indian e-commerce market is projected to grow from US$ 125 billion in FY24 to US$ 345 billion in FY30.​

Policy 
support

* 100% FDI is allowed in B2B e-commerce.​

* 100% FDI under the automatic route is permitted in the marketplace model of E-commerce.

Increasing
Investments

* The indigenous e-commerce giant Flipkart is poised to raise US$ 1 billion in a new funding round, with its parent company Walmart anticipated to contribute US$ 600 million. ​

* Google LLC is investing US$ 350 million in Flipkart as part of a nearly US$ 1 billion funding round led by Walmart Inc., Flipkart's majority stakeholder, with the investment aimed at expanding Flipkart's business and modernizing its digital infrastructure to serve customers across India, and the two companies also plan to increase Flipkart's use of Google's cloud platform.​

Last updated: Apr, 2025

Major Hubs for E-commerce

  • Karnataka
  • Delhi
  • Maharashtra
  • Tamil Nadu
  • Andhra Pradesh

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