India’s e-commerce market to reach $325 billion in value by 2030: Report
India's e-commerce market is projected to grow to a value of $325 billion by 2030. As per a report by Invest India, the anticipated growth of this market aligns with broader forecasts for India's digital economy, which is expected to reach a staggering $800 billion within the same timeframe.
Currently valued at $70 billion, online shopping represents about 7 per cent of India's total retail market, leaving ample room for expansion. A multitude of factors, including widespread internet accessibility, affordable internet services, and a burgeoning number of smartphone users in rural areas, are poised to drive this promising trajectory in the coming years.
Invest India's report underscores India's impressive internet user base, standing at a remarkable 881 million, making it the world's second-largest. With such a substantial digital presence, India is poised to be the third-largest online retail market by 2030. This growth will be fueled by the rapid expansion of the country's digital economy, signaling a bright future for its e-commerce sector.
With an estimated 500 million shoppers by 2030, India will lead the global online shopping arena. This significant growth can be attributed to several key factors propelling the e-commerce boom including the skyrocketing internet accessibility across the country, with an expected 87 per cent of Indian households projected to have internet access by 2025. Particularly noteworthy is the surge in mobile internet usage, highlighting the pivotal role of smartphones in driving e-commerce adoption.
Other crucial factors driving the e-commerce boom include the rising number of smartphone users, the prevalence of UPI in digital transactions, and the expanding availability of content in local languages.
Over 1.18 billion people or 80 per cent of the current are projected to have access to smartphones by 2026. This substantial increase in smartphone users, coupled with higher average data consumption per user, is expected to further boost the digital economy. Additionally, the Unified Payments Interface (UPI) has emerged as a significant player in digital transactions, facilitating transactions worth $1.5 trillion in 2022.
The proliferation of local language and mobile-first content is notable, with around 73 per cent of India's internet users preferring Indian languages. This preference has led to the establishment of an estimated regional language user base of 540 million, contributing to a market valued at $53 billion.
Invest India also highlights the growing importance of rural-centric e-commerce, with a significant portion of demand expected from Tier II-IV towns and rural areas by 2026. Government initiatives, such as the National Logistics Policy, aim to streamline deliveries to remote areas, thereby enhancing logistical efficiency and cost-effectiveness.
Additionally, the quick commerce market within India's hyperlocal mobility sector is projected to grow to $5.5 billion by 2025. The e-commerce sector is currently witnessing certain noteworthy mergers and acquisitions, with companies strategically positioning themselves for growth.
Government schemes such as Jan Dhan Yojana, BharatNet Project, and the implementation of Goods & Service Tax (GST) are shaping the digital economy of India, says the report.
