The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest e-commerce market in the world by 2034. The Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth, with grocery and fashion/apparel likely to be the key drivers of incremental growth. The Indian online grocery market is estimated to reach US$ 26.93 billion in 2027 from US$ 3.95 billion in FY21, expanding at a CAGR of 33%. E-commerce sales are expected to increase at a CAGR of 18.2% between 2021 and 2025 to reach Rs. 8.8 lakh crore (US$ 120.1 billion).

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

India's e-commerce platforms achieved a significant milestone, hitting a GMV of US$ 60 billion in fiscal year 2023, marking a 22% increase from the previous year. 

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

With over 821 million users, India was the second-largest internet market in the world with 117.6 billion UPI transactions in 2023. 

For the first week of 2023 festive season, Indian e-commerce platforms generated sales worth US$ 5.67 billion Gross Merchandise Value (GMV).

The B2C E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 8.68% during 2023-27. According to a recent report by RedSeer, India’s e-B2B market is projected to reach a GMV of US$ 100 billion by 2030.

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 Indian e-commerce sector is ranked ninth in cross-border growth in the world, according to the Payoneer report. Indian e-commerce is projected to increase from 4% of the total food and grocery, apparel, and consumer electronics retail trade in 2020 to 8% by 2025.

Government e-Marketplace (GeM) is an online platform for public procurement in India that was launched on August 9, 2016, by the Ministry of Commerce and Industry with the objective of creating an inclusive, efficient, and transparent platform for the buyers and sellers to carry out procurement activities in a fair and competitive manner. Through automation and digitization of processes, GeM has led to higher process efficiencies, better information sharing, improved transparency, reduced process cycle times, and a higher level of trust among bidders, which in turn have resulted in greater competition and higher savings. In FY23, the procurement of goods and services from the government portal crossed the Rs. 2 lakh crore (US$ 24 billion) mark. As of November 2022, the GeM portal served 12.28 million orders worth Rs. 3,34,933 crores (US$ 40.97 billion) from 5.44 million registered sellers and service providers for 62,247 buyer organizations.

India’s social commerce has the potential to expand to US$ 16-20 billion in FY25, at a CAGR of 55-60% with a potentially monumental jump to US$ 70 billion by 2030, owing to high mobile usage. 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.

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.

India's internet economy is expected to register six-fold growth and touch US$ 1 trillion by 2030, driven by the e-commerce vertical, from US$ 155-175 billion in 2022.

According to a report published by IAMAI and Kantar Research, India's internet users are expected to reach 900 million by 2025 from ~700 million internet users in 2022.

As of 2023, India boasts over 820 million active internet users, with rural areas contributing significantly, accounting for more than half with 442 million users.

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 e-commerce market’s share of Tier-3 cities grew from 34.2% in 2021 to 41.5% in 2022, shows data.

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.

India’s overall smartphone market grew by 1% in 2024 with Samsung capturing the top position with a market share of 17% in 2024. The number of smartphone users in India is expected to reach 887.4 million by 2030. India has the highest data consumption rate worldwide at 14.1 GB of data per person a month. By 2025, India will be home to 650 million users who consume short-form videos.

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. 

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.