Let’s guess Indian eCommerce worth, is it $40-50 billion?
It was worth a stunning $83 Billion in 2022.
The rapid rise in internet users along with their rising income has led to the growth of online shopping in India. eCommerce has reformed the traditional way of many forms of business models like B2B, B2C, C2C, C2B and D2C. Now it is more convenient and easy-to-understand for every business to operate through online mode. The Indian D2C market is expected to reach around $60 Billion by 2027 and the overall Indian eCommerce market is expected to reach $350 Billion by 2030.
The Indian government has made a number of announcements since 2014, including Digital India, Made in India, Start-up India, Skill India, and Innovation Fund.
The Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly planning to use the Open Network for Digital Commerce (ONDC) to establish protocols for cataloging, vendor discovery, and price discovery in order to systematize the onboarding process of retailers on e-commerce platforms.
The Indian Government raised the restriction of FDI (Foreign Direct Investment) in the eCommerce marketplace model to up to 100% in order to boost the participation of foreign businesses in that sector (in B2B models).
eCommerce has opened the door to many possibilities for business owners and gave exposure to a wide range of customer audiences. By 2034, it is projected that the Indian E-commerce market will overtake the US as the second-largest E-commerce market in the world.
Digital payments has been a great contributor towards ecommerce as many people have experienced ease in payments. Report says there has been more than $12 Billion worth of transactions for ecommerce in 2022 which is increased by 53% as compared to 2021.
Soon Open Network for Digital Commerce (ONDC) will display products and services from every platform. Resulting in an increase of India’s ecommerce which will also increase revenue from exports and grow employment.
Currently the Indian eCommerce market is worth $83 Billion also according to Grant Thorton india is predicted to be worth $188 Billion dollar by 2025.
After China and USA, India is currently known to be the 3rd largest eCommerce market.Where, Food and Personal is known to be the largest sector which contributes ~31.4% to Indian eCommerce.
Major ecommerce market in Indian-
- Tamil Nadu
- Andhra Pradesh
eCommerce in India
India’s Social commerce is expected to reach till $16-20 Billion by FY25 i.e., increasing at CAGR of 55-60%. Overall Indian ecommerce is expected to reach $111 Billion by 2024 and is expected to reach $200 Billion by 2026.
Pandemic has also been a great contributor towards transforming India’s shopping habits. As per reports, there has been around 180 million people shopping online in India.
E-commerce has been used in almost all pin codes in India. In India, tier two cities and smaller towns account for more than 60% of transactions and orders. E-commerce is becoming increasingly popular even in tier-2 and tier-three cities, which now account for over half of all consumers and three out of every five orders placed on top e-retail platforms. By 2030, rural per capita consumption will increase 4.3 times faster than it would in metropolitan regions (3.5 times faster).
The retail industry in India is generally unorganised. The share of modern retail, which includes e-commerce, will rise to 30-35% during the next 3–5 years, while the share of conventional retail will decline to 65-70%.