India’s E-commerce Segment Sharply grow over the previous year and projected fiscal growth will touch up to USD 33 billion this year. Online Retail Business growth of 19% over 2016-17 said in the Economic Survey 2018.
In 2017, online retail grew to $17.8 billion in gross merchandise value (GMV) from $14.5 billion last year, a 23 per cent increase, Livemint reported on Thursday while citing RedSeer Management Consulting, a market research and consulting firm. According to the Financial Daily, the country’s e-commerce market picked up sharply in the second half of 2017 after nearly 18 months.
In 2023, India E-Commerce saw significant growth in the e-commerce ecosystem in India. New Market player Join the race in E-commerce like Meesho, ONDC, Jiomart and Many More. After Covid ecommerce transactions rise people like to order directly through online stores. India’s E-Commerce Market is Projected to touch $150 Billion in 2026.
In Recent Years India’s E-Commerce has experienced a boom in the Internet and Digital Transaction using smartphones. As of 2024, India has seen a huge growth in internet connection to 895 Million Driven by the Digital India Initiative. 97% of internet connections are wireless. The smartphone base has also increased significantly and is expected to reach 1 Billion in 2025. Digital Economy will touch US $ 1 Trillion by 2030. The Rapid Rise in Internet Users Indian e-commerce has grown dramatically.
India’s e-commerce sector has transformed the way business is done in India. It has opened various segments of commerce ranging from Business-to-Business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C) and consumer-to-business (C2B). Major segments such as D2C and B2B have experienced immense growth in recent years. India’s D2C market is expected to reach US$ 60 billion by FY27. The overall e-commerce market is also expected to reach US$ 350 billion by 2030 and will experience 21.5% growth in 2022 and reach US$ 74.8 billion.
As Rapid Growth in UPI (Unified Payment Interface ) based transactions continues to break all records, India’s E-commerce industry is witnessing growth major UPI Player are Paytm, Phonepe, Google Pay, Bhim, Mobikwik etc. Case use declined after the launch of Upi in 2016.
A start-up India initiative pushes the eCommerce sector and many companies to reach their limit. India’s IT sector and Business process outsourcing (BPO) saw a growth of 8% to $ 140 Billion excluding the e-commerce and hardware sector in the 2016-17 fiscal year. E-commerce-driven companies like Flipkart, Amazon India, and Paytm saw a high growth rate. Snapdeal sales collapsed after it cut costs as proposed to Flipkart. Due to heavy discounting on sales from Flipkart and Amazon, they boost their growth in the e-commerce space.
To further promote this sector, many initiatives have been taken, which include the establishment of BPO Promotion and Common Services Centers to help create digital inclusion and equitable growth and employ 1.45 lakh persons, mostly in the small towns.
Setting up a separate Northeast BPO promotion Scheme with 5000 seats and having employment potential of 15000 persons; preparing the draft Open Data Protection Policy law; besides long-term initiatives like Digital India, Make in India, Smart Cities, e-Governance, push for digital talent through Skill India, drive towards a cashless economy and efforts to kindle innovation through Start-up India,” the survey said.
The next frontier on the ease of doing business is addressing pendency, delays and backlogs in the appellate and judicial arenas. These are hampering dispute resolution and contract enforcement, discouraging investment, stalling projects, hampering tax collections but also stressing tax-payers, and escalating legal costs.
Article Updated on: 01-09-2024
