Trade Analytics
Ecommerce
The Indian E-commerce market is expected to reach US$ 200 billion by 2026.

Indian Ecommerce Industry Analysis

Latest update: April, 2019

Growth

 

Last Updated: April, 2019

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 E-commerce market is expected to reach US$ 200 billion by 2027 from US$ 38.5 billion in 2017. India's e-commerce market has the potential to grow more than four folds to US$ 150 billion by 2022 supported by rising incomes and surge in internet users. Online shoppers in India are expected to reach 120 million in 2018 and eventually 220 million by 2025. Average online retail spending in India was US$ 224 per user in 2017.

E-commerce and consumer internet companies in India received more than US$ 7 billion in private equity and venture capital in 2018. Online retail sales in India are expected to grow by 31 per cent to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall. Online retail is expected to contribute 2.9 per cent of retail market in 2018.

Much growth of the industry has been triggered by increasing internet and smartphone penetration. Internet penetration in India grew from just 4 per cent in 2007 to 34.42 per cent in 2017, registering a CAGR of 24 per cent between 2007 and 2017. As of December 2018 overall internet penetration in India was 46.13 per cent. The number of internet users in India is expected to increase from 560.01 million as of September 2018 to 829 million by 2021. Internet penetration in rural India is expected to grow as high as 45 per cent by 2021 compared to the current rate of 23.87 per cent. The e-commerce retail logistics market in India is estimated at US$ 1.35 billion in 2018 and is expected to grow at a 36 per cent CAGR over the next five years.

A young demographic profile, rising internet penetration and relative better economic performance are the key drivers of this sector. The Government of India's policies and regulatory frameworks such as 100 per cent foreign direct investment (FDI) in B2B e-commerce and 100 per cent FDI under automatic route under the market place model of B2C e-commerce are expected to further propel growth in the sectors. As of August 2018, the government is working on the second draft of e-commerce policy, incorporating inputs from various industry stakeholders. In February 2019, the Government of India released the Draft National e-Commerce Policy which encourages FDI in the marketplace model of e-commerce. Further, it states that the FDI policy for e-commerce sector has been developed to ensure a level playing field for all participants. According to the draft, a registered entity is needed for the e-commerce sites and apps to operate in India.

Indian Ecommerce Industry Report (April, 2019)
Download PDF Download PDF  (Size: 930.61 KB )
Indian Ecommerce Industry Report (March, 2019)
Download PDF Download PDF  (Size: 929.54 KB )

Click to access the Ecommerce Industry Archived Report

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_alok_kirloskar1.jpg From smart water pumps to drones: Technology is changing Indian farms!
Alok Kirloskar, Executive Director, Kirloskar Brothers Limited

Disruptive technologies and innovations in application engineering are fast changing farming practices in India. From preparing the land to sowing, to reaping and mentori...

author_logo-ibef1.jpg Mobile Phone Manufacturing in India: Towards A Brighter Future!
IBEF, Knowledge Centre

India is the world’s second largest mobile phone manufacturer after China. And with the current pace of growth, India is not far from becoming the leading handset m...

author_logo-ibef1.jpg Solar energy generation in India: Lighting lives!
IBEF, Knowledge Centre

The generation of power from solely renewable sources like solar energy is a prime focus of India’s energy planning. Started in the early 1970s, the process of crea...

author_logo-ibef1.jpg Digital payment industry in India
IBEF, Knowledge Centre

From being primarily a cash-obsessed economy, India’s digital payment story is new but exciting. Driven by progressive regulatory policies and increased use of mobi...

author_logo-ibef1.jpg The Indian Hotel Industry, Sunshine Ahead
IBEF, Knowledge Centre

Ever expanding domestic tourism, increasing foreign tourist arrivals, forex earnings growth, high airline passenger numbers and muted supply growth has put the Indian hot...

author_logo-ibef1.jpg Generic Medicines and Vaccines: India's Pharma Exports and the Role It Plays
IBEF, Knowledge Centre

In any country, research and studies pertaining to medicines tend to be expensive. That is why companies researching new medicines tend to pass on these costs to consumer...

ideas More

Ideas

BYJU’S: Reinventing Education
Byju’s - The Learning app, known for its unconventional and practical methods of teaching, has grown rapidly over the years. The goal of the app was to make learning accessible, effective, engaging, and personalised for everyone. It initially started in 2011 in Bengaluru with a focus on K-12 (students in classes 4-12)...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password