(MENAFN- KNN India) New Delhi, Apr 29 (KNN) India's rapidly growing e-commerce market is projected to swell to an astonishing USD 325 billion by 2030, positioning the country as a global powerhouse in online retail, according to a report by Invest India.
With 881 million internet users currently, India already has the second-largest internet user base worldwide. This number is expected to surge further, with 87 per cent of Indian households anticipated to have internet connections by 2025.
The drivers behind this explosive e-commerce growth are multifaceted. India's affordable mobile data costs of just USD 0.17 per gigabyte are allowing more citizens to come online. Smartphone adoption is also on the rise, with 1.18 billion smartphone users projected by 2026.
"The increasing internet penetration, especially through mobile devices, is really fueling India's digital economy," said Rajesh Mehta, an analyst at Forrester Research. "We're seeing purchases shift towards rural areas, with over 60% of e-commerce demand expected from tier 2-4 towns and villages by 2026."
The number of online shoppers in rural India alone is projected to grow at a 22 per cent compound annual rate to 88 million by 2026. Urban areas will see a 15 per cent annual increase to 263 million online buyers.
Other factors like India's unified digital payments system (UPI), which saw USD 1.5 trillion in transactions in 2022, and the rise of local language content are also playing a role. An estimated 540 million internet subscribers now use Indian regional languages online.
The Indian government has implemented policies to support the digital economy's growth, including a National Logistics Policy to improve e-commerce deliveries nationwide.
While horizontal e-commerce players like Amazon and Walmart's Flipkart lead the market, vertical segments like social commerce, quick commerce, and healthtech are also gaining significant traction and investment.
"India is now too big to be ignored by any company with global ambitions in e-commerce and digital services," said Mehta. "All indicators point towards India cementing its position as a worldwide e-commerce leader this decade."
(KNN Bureau)
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