Sector overview: E-commerce in India

E-commerce in India

E-commerce in India has experienced meteoric growth in the last five years, partly due to the pandemic and the surge in the number of smartphones in the country, which give many Indians access to the Internet.

Another factor driving the growth is the increase in the number of urban households embracing the convenience of online shopping in their busy lives. By 2023, 289 million people in India were buying goods and services online.

India is therefore one of the world’s most popular online retail destinations. Major U.S. players such as Amazon, Walmart and Apple have already invested billions in the Indian market. In addition, government initiatives such as Digital India, Skill India and Start-up India are contributing to the growth of the e-commerce sector.

The Indian e-commerce sector is a source of innovative business models and smart technology solutions. Indian customers are flocking to online shops in increasing numbers. As an international player in India, this allows you to grow significantly in this field.

Snapshot of the e-commerce sector in India

India is the fastest growing e-commerce market in the world. By 2030, the market is expected to reach a value of 350 billion dollars.
In India, online retail represents 25% of the total retail market and is expected to grow to 37% by 2030.
The online grocery segment in India is expected to reach 27 billion dollars by 2027, up from 4 billion dollars in 2021. That is a CAGR of 33%.
India has the third largest group of online consumers in the world, 289 million; only China and the US have more.
The number of orders in the Indian e-commerce market is up about 24% year-on-year, with the personal care, beauty and wellness (PCB&W) category benefiting the most. This category saw an 80% increase in orders by 2023.

Our expert

Deepmala Datta Head of Business Development

Growth drivers of India's e-commerce sector

The number of internet users in India has grown from 700 million in 2021 to 918 million in 2023.
India will be the second largest online consumer market in the world by 2030 with nearly 500 to 600 million shoppers.
Between 2020 and 2030, major cities will generate 88% of new online shoppers and contribute 150 billion dollars to the online retail sector’s Gross Merchandise Volume.
It is becoming increasingly easy for online retailers to deliver products to remote locations. This is reinforced by huge government investment in infrastructure.
The government is allowing e-commerce companies that are 100% owned by Foreign Direct Investment.