India’s e-commerce industry, valued at Rs. 10,82,875 crore (US$ 125 billion) in FY24, is projected to grow to Rs. 29,88,735 crore (US 345 billion) by FY30, reflecting a compound annual growth rate (CAGR) of 15%. The market is expected to surpass Rs. 13,69,120 crore (US$ 160 billion) in FY25, reflecting an annual growth rate of 25%–30%.
In 2024-25, e-commerce emerged as a key driver of start-up investments, drawing Rs. 26,527 crore (US$ 3.1 billion) across 79 deals — accounting for 31% of total start-up funding. This marked a sharp 128% jump from 2023’s Rs. 11,980 crore (US$ 1.4 billion) across 59 deals. The hyperlocal and B2C segments led the charge, with Zepto (Kirana Kart Technologies) standing out by raising Rs. 11,980 crore (US$ 1.4 billion) alone — contributing 44% of all e-commerce-related PE/VC investments.
According to a joint report by real estate consulting firm ANAROCK and retail news platform ETRetail, the sector is further expected to reach Rs. 47,64,650 crore (US$ 550 billion) by FY35, driven by increasing digital adoption and evolving consumer behaviour.
India’s e-retail market has reached around Rs. 5,13,420 (US$ 60 billion) in GMV, making it the world’s second largest by online shopper base. Trend-led fashion is set to grow nearly 4x to Rs. 68,456-85,570 crore (US$ 8–10 billion) by 2028, with over 50% of sales expected from online platforms.
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 FY30.
In FY24, tech and e-commerce giants Google, Meta, Amazon, and Flipkart generated over Rs. 60,000 crore (US$ 7.19 billion) in advertising revenue, a 9% increase from Rs. 55,053 crore (US$ 6.60 billion) in FY23.
According to a recent report by EY India, generative artificial intelligence (GenAI) could enhance productivity in India’s retail industry by 35-37% over the next five years. The report, titled ‘The AIdea of India: 2025’, reveals that 48% of Indian businesses have already initiated proof of concept (PoCs) for GenAI solutions, while another 32% are planning to invest or have allocated budgets for AI adoption.
In January 2025, the Unified Payments Interface (UPI) facilitated a total of 16,996 crore transactions, with the platform processing over Rs. 23.48 lakh crore (US$ 270.3 billion) in value.
In May 2025, UPI transactions reached an all-time high of 18.68 billion in volume and Rs. 25.14 trillion (US$ 294 billion) in value, marking a 33% year-on-year increase in volume and a 23% rise in value compared to May 2024. Unified Payments Interface (UPI) transactions surged to a record high in March 2025, reaching Rs 24.77 trillion (US$ 290 million) in value and 19.78 billion in volume.
The volume of digital payment transactions reached 222.19 billion in FY25, up from 164.43 billion in FY24.
As of November 2024, India has around 944.7 million wireless internet subscribers, which is increased from 941.5 from October 2024.
As reported by Counterpoint Research, India's smartphone market has positioned itself as the second largest in the world by unit volume and the third largest by value in the third quarter of CY24. During this period, India represented 15.5% of global smartphone shipments.
According to the International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker, India's smartphone market experienced a year-over-year (YoY) growth of 4%, with total shipments reaching 151 million units. The robust performance in the first half of the year, which saw a growth rate of 7%, offset the slower growth in the second half, where the rate was only 2%.
India’s booming e-commerce market is driven by affordable smartphones and low-cost data plans, leading major retail, and consumer goods makers to increase their investments in the online space.
The Government e-Marketplace (GeM) crossed a GMV of Rs. 5 lakh crore (US$ 58.5 billion) in FY25, achieving the feat 18 days before year-end. Services led the growth, contributing 62% Rs. 2.54 lakh crore (US$ 29.7 billion), while. products made up 38% to Rs. 1.55 lakh crore (US$ 18.1 billion).
In 2023, 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 2025. India's e-commerce order volume increased by 36% in the last quarter of 2020, with the personal care, beauty & wellness (PCB&W) segment being the largest beneficiary. Driven by the beauty and personal care (BPC), India's live commerce market is expected to reach a GMV of US$ 4-5 billion by 2025.
India’s subscription e-commerce market, valued at Rs. 88,479 crore (US$ 10.34 billion), in 2024, is projected to reach Rs. 3.2 lakh crore (US$ 374.24 billion), by 2033, growing at a CAGR of 45.13% during 2025–2033.
The India Quick E-Commerce (Quick Commerce) market is poised for exponential growth, projected to reach US$ 19,932.5 million driven by rising internet and smartphone penetration, convenience of quick delivery, and accelerated adoption during COVID-19, with diverse product categories and order value segments catering to evolving consumer preferences, and the domination of metropolitan cities presenting significant opportunities for retailers and key players to capitalize on the rapidly expanding market.
HUL, Britannia, AWL Agri-Business, Dabur, Tata Consumer Products, and Marico—posted cumulative quick commerce sales of over Rs. 4,400 crore (US$ 515 million) in FY25.
Huge investments from global players—such as Facebook, which is investing in Reliance Jio—are being recorded in the e-commerce market. Google also reported its first investment worth US$ 4.5 billion in Jio Platforms. This deal was followed by the purchase of Future Group by Reliance Retail, expanding the presence of the Ambani Group in the e-commerce space.
The growth for the industry has mostly been triggered by an increase in internet and smartphone penetration. The number of internet connections in 2023 increased significantly to 895 million, driven by the ‘Digital India’ programme. Out of the total internet connections, ~55% of connections were in urban areas, of which 97% of connections were wireless.
Online penetration of retail is expected to reach 14% by 2028 compared with 8% in 2024. Moreover, online shoppers in India are expected to reach 220 million by 2025. According to a report published by IAMAI and Kantar Research, India’s internet users are expected to reach 900 million by 2025 from ~622 million internet users in 2020, increasing at a CAGR of 45% until 2025.
As of March 2024, India has around 954.4 million internet subscribers.
According to a Deloitte India Report, as India is moving towards becoming the third-largest consumer market, the country's online retail market size is expected to reach US$ 325 billion by 2030, up from US$ 70 billion in 2022, due to the rapid expansion of e-commerce in tier-2 and tier-3 cities.
The number of online shoppers in India surged from 140 million in 2020 to nearly 260 million in 2024. Projections indicate this figure will nearly double to 300 million by 2030 and reach 700 million by 2035, with a significant portion of this growth stemming from Tier-2 cities.
India's e-retail market is projected to exceed US$ 160 billion by 2028, driven by strong post-pandemic growth and significant potential for expansion, as online spending currently represents only 5-6% of total retail spending compared to much higher rates in the US and China.
Long-term fundamentals remain strong, with e-retail expected to grow over 18% annually, reaching Rs. 14.5 lakh crore (US$ 170 billion) in gross merchandise value (GMV) by 2030. Nearly one in ten retail dollars will be spent online, driven by rising discretionary spending as India’s per capita GDP exceeds to Rs.3,00,000-4,00,000 lakh (US$ 3,500–4,000).
India is set to become the world's second-largest online consumer market by 2030, with approximately 600 million shoppers and significant growth in e-commerce driven by increased smartphone access, urban adoption, and a projected rise in online retail from 25% to 37% of the total market.
A total of US$ 33.4 billion in private equity and venture capital investments have been made in the online e-commerce sector over the years, according to a report.
In February 2025, Adani Group has announced an investment of Rs. 30,000 crore (US$ 3.46 billion) in Kerala over xthe next five years, focusing on infrastructure, logistics, and manufacturing expansion. The group, which is already developing the Vizhinjam port and operating Thiruvananthapuram International Airport, has invested Rs. 5,000 crore (US$ 577.1 million) in the port project and committed an additional Rs. 20,000 crore (US$ 2.31 billion).
E-commerce leader Amazon and the Directorate General of Foreign Trade (DGFT) have renewed their partnership to enhance e-commerce exports from India. This extended collaboration builds on the initial memorandum of understanding (MoU) signed in November 2023 and focuses on equipping Indian MSMEs with the essential skills and resources needed to succeed in the e-commerce export sector, as stated by the company.
India is poised for massive growth, with India’s quick commerce market expected to reach Rs. 43,435 crore (US$ 5.0 billion) by FY25 and Rs. 86,001 crore (US$ 9.9 billion) by FY29.
India has gained 125 million online shoppers in the past three years, with another 80 million expected to join by 2025, according to a report by Kantar.
During 2019 and 2026, the number of online shoppers in India is expected to increase dramatically at a CAGR of 22% to 88 mn in rural India and 15% to 263 mn in urban India.
India has the opportunity to significantly increase its share in the global B2C e-commerce market, which is projected to reach US$ 8 trillion by 2030. With current e-commerce exports at US$ 2 billion, there is substantial room for growth, particularly in high-demand products.
The Government of India's policies and regulatory frameworks such as 100% Foreign Direct Investment (FDI) in B2B E-commerce and 100% FDI under automatic route under the marketplace model of B2C E-commerce are expected to further propel growth in the sector. As per the new FDI policy, online entities through foreign investment cannot offer the products which are sold by retailers in which they hold an equity stake.
Through its Digital India campaign, the Government of India is aiming to create a trillion-dollar online economy by 2025. It has formed a new steering committee that will look after the development of a government-based e-commerce platform. The new committee, set up by the Commerce Ministry, will provide oversight on the policy for the Open Network for Digital Commerce (ONDC), which is an e-commerce platform that the government is backing for development. The ONDC will serve as the infrastructure for setting up the final storefront, which will be similar to Flipkart and Amazon.
Government initiatives like the National Logistics Policy aim to smoothen deliveries to hinterlands, making logistics efficient and cost-effective. Government initiatives like Jan Dhan Yojana, BharatNet Project, and the introduction of Goods & Service Tax (GST) have played a crucial role in shaping India's digital economy. Through its ‘Digital India’ campaign, the Government of India is aiming to create a trillion-dollar online economy by 2025
The Budget supports MSMEs with higher investment limits, better credit guarantees, and customised credit cards, alongside a Rs. 10,000 crore (US$ 1.17 billion) fund for startups. It also aims to boost domestic electronics manufacturing and promote Global Capability Centres in Tier 2 cities to enhance e-commerce supply chains.
