India’s Online Retail to Cross US$ 90 Billion in 2026: Redseer
- IBEF
- October 21, 2026
India’s online retail market grew about 25% year-on-year (YoY) to around Rs. 3.55 lakh crore (US$ 38 billion) in the first half of 2026, according to Redseer Strategy Consultants. This was the market’s strongest first half in four years. Redseer projects the full year to cross Rs. 8.41 lakh crore (US$ 90 billion) at 22-24% growth, the fastest in five years. Mobiles, however, remained flat in the first half and are expected to grow only 2-3% in 2026. Grocery, beauty and personal care (BPC), and home and furniture account for about 40% of online retail gross merchandise value (GMV) in 2026 and roughly three-fifths of the GMV added this year. Grocery grew 53% and 51% in the last two halves and is set to overtake mobiles as the second-largest online category, with its share rising from about 16% to about 19%.
Electronics rebounded to 22% growth, helped by the Goods and Services Tax (GST) cut on large appliances, but is projected to normalize to 12-15% in the second half. Redseer projects the 2026 festive season to grow about 25% to Rs. 1.40-1.49 lakh crore (US$ 15-16 billion), the strongest in about five years. This growth is expected to be led by grocery (48-50%), BPC (35-40%) and home and furniture (32-35%), compared with 5-7% for mobiles. The share of mobiles and electronics in festive GMV is expected to fall below half, from 51% to 46%. Partner at Redseer Mr. Kushal Bhatnagar noted India’s online retail is growing fastest where demand is steadiest, a shift that makes everyday categories the key drivers of growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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