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India’s E-commerce Market Set to Reach $325 Billion by 2030

3 weeks ago
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India’s E-commerce

Source: TheDialog/Invest India

Invest India predicts a significant surge in India’s e-commerce market, estimating it to reach $325 billion by 2030, alongside a booming digital economy expected to touch $800 billion. With 881 million users, India currently boasts the world’s second-largest internet user base, a number expected to climb to the third position by 2030, according to Invest India.

 

E-commerce Market Projections

By 2030, India’s e-commerce market is predicted to soar to $325 billion, while the digital economy is set to reach an impressive $800 billion, according to Invest India’s projections.

 

Current Scenario

Presently, India’s e-commerce market stands at $70 billion, constituting around 7% of the nation’s overall retail market. The significant growth in internet penetration, with around 52% of the Indian population accessing the internet in 2022, has been a driving force behind this expansion.

 

Key Drivers

Invest India identifies increasing internet penetration as a primary driver of this growth, with around 87% of Indian households expected to have internet connections by 2025. Additionally, India’s affordability in data prices, with one gigabyte of data costing approximately $0.17 (Rs 13.5), has played a pivotal role in driving a vast population online.

 

Rural E-commerce Growth

The number of online shoppers in India is projected to increase significantly, with a compound annual growth rate (CAGR) of 22% to 88 million in rural India and 15% to 263 million across urban India between 2019 and 2026. This growth is further supported by the rise in smartphone users, projected to reach 1.18 billion by 2026.

 

Digital Infrastructure

Invest India highlights India’s digital infrastructure, including Unified Payments Interface (UPI), eKYC, and Aadhaar, as crucial elements that have streamlined the digital experience, reducing consumer onboarding time by 80%. With initiatives like the National Logistics Policy, the government aims to enhance logistics, making deliveries to rural areas efficient and cost-effective.

 

Emerging Trends

The rise of hyperlocal mobility, led by companies like Swiggy and Zomato, is expected to reach a market size of $5.5 billion by 2025. Additionally, preventive healthcare in health tech is anticipated to double by 2025, creating significant job opportunities.

 

Social Commerce and Mergers

Social commerce is expected to grow to a market size of $70 billion by 2030, with small video applications gaining wide appeal. The sector has witnessed notable mergers and acquisitions, with companies like Zomato and PhonePe making strategic moves to strengthen their positions.