India E-commerce Market: Rapid Digitalization and Government Initiatives Driving the Market Growth

India E-commerce Market size was valued at USD 51.57 Billion in 2022 and is expected to grow at a CAGR of 31.13 percent from 2023 to 2029 to reach USD 343.90 Billion.

India E-commerce Market Overview

The E-commerce market in India has grown remarkably in the past few years. There is a transformation in the way people shop and do business. India has become one of the most dynamic e-commerce markets in the world because of its vast population, increasing internet penetration and thriving digital ecosystem. The country has become the eighth-largest market for e-commerce, trailing France, and a position ahead of Canada. In FY21, the country had the third-largest online shopper base of 150 million after China and the US. India’s e-commerce sector 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). As per research, India B2B E-commerce market is expected to rapidly during the forecast period. The India D2C E-commerce market also held the major share in the India E-commerce industry in 2022 and is expected to grow rapidly in the future.India E-commerce MarketTo know about the Research Methodology :- Request Free Sample Report

India E-commerce Market Dynamics

Government Initiatives Driving the India E-commerce Market Regulatory support is majorly helping streamline e-commerce operations. The Government of India has taken many initiatives, namely Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The implementation of such programs on time and effectively is expected to support growth of E-commerce in the country during the forecast period. The Digital India initiative has boosted the adoption of e-commerce by encouraging consumers to shop online. The various e-commerce policies and guidelines introduced by the government addressing several aspects including FDI (Foreign Direct Investment), consumer protection, data privacy, and marketplace conduct help to foster transparency and trust among consumers and businesses. Some of the initiatives taken by the Government to promote E-commerce in India are:
1 As of November 2022, the Government e-Marketplace (GeM), an online platform for public procurement in India, served 12.28 million orders worth US$ 40.97 billion from 5.44 million registered sellers and service providers for 62,247 buyer organizations.
2 The Department for Promotion of Industry and Internal Trade (DPIIT) is reportedly planning to use the Open Network for Digital Commerce (ONDC) to set protocols for cataloging, vendor discovery and price discovery in order to systematize the onboarding process of retailers on e-commerce platforms.
3 National Retail Policy: The ease of doing business, rationalization of the license process, digitization of retail, focus on reforms and an open network for digital commerce are the five areas identified by the government. They state that offline retail and e-commerce are required to be administered in an integral manner.
4 The Government has launched many initiatives such as Umang, Start-up India Portal, Bharat Interface for Money (BHIM) etc to boost digitalization under the Digital India movement.
5 Huge investments by the Government in rolling out fiber network for 5G is expected to help boost E-commerce in India
6 The Indian Government has hiked the limit of FDI in E-commerce marketplace model to up to 100% (in B2B models) to increase the participation of foreign players in E-commerce
Increasing Investments Creating Opportunities for the India E-commerce Market The investments coming from various sources such as venture capitalists, private equity firms, and foreign direct investment (FDI) play a crucial role in creating opportunities for the e-commerce market in India. Investments are helping e-commerce platforms to improve their customer experience by highly investing in user interface (UI) and user experience (UX) design, personalized recommendations, responsive customer service, and seamless navigation. This is leading to higher customer retention and loyalty. The increasing investments are enabling e-commerce companies to diversify their product offerings. This diversification includes the addition of new categories, exclusive merchandise, and collaborations with both local and international brands, which results in the broadening of consumer choices. The increasing funding for Indian e-commerce marketing and branding activities through investments is expected to create brand awareness and attract new customers. Some of the examples of the investments are:
1 In 2021, the e-commerce sector of India has received USD 1.2 billion of PE/VC investments, which is a 5.4 times increase year on year.
2 CARS24, a leading used car e-commerce platform in India, raised USD 450 million in funding, comprising a US$ 340 million Series F equity round and US$ 110 million in debt from various financial institutions in September 2021
3 Bikayi, a mobile commerce enabler, raised US$ 10.8 million in a Series A funding round, which was led by Sequoia Capital India in September 2021
4 Xpressbees, a logistics ecommerce platform has become a unicorn valued at USD 1.2 billion in 2022. The firm also raised USD 300 million in its Series F funding.
Rising Data Privacy Concerns Challenging the India E-commerce Market The online shopping market and online retail market in India have grown rapidly and are expected to continue growing during the forecast period. As more consumers are turning to online shopping, they are entrusting e-commerce platforms with their personal and financial information. E-commerce platforms collect extensive customer data, which includes personal information, purchase history, and payment details. The mishandling or breach of this data has severe consequences, including legal actions, financial penalties and reputational damage. There were huge number of high-profile data breaches involving Indian e-commerce companies in 2022. For example – In July 2022, the personal information of over 100 million users of the e-commerce platform Meesho had been leaked. The non-compliance with data privacy regulations results in legal repercussions, which include fines and penalties. These financial risks are substantial and detrimental to a company's bottom line.

India E-commerce Market Regional Insights

The Western Indian E-commerce market held the largest share in 2022 and is expected to grow at a high rate during the forecast period. The e-tailing market in India, especially on the west side of the country is growing rapidly. Maharashtra is the e-commerce hub of Western India. In the state, Mumbai is the financial capital and the presence of key e-commerce companies, logistics providers, and tech startups in Mumbai has made it an important center for e-commerce operations. Western Indian has a diverse consumer base, including urban centers such as Mumbai and Pune with developing cities and towns. Gujarat is also a major industrial and commercial hub in the in Western India having various manufacturing and trade activities. This makes the state a one of the key markets for B2B e-commerce with the companies in the sectors such as textiles, chemicals, and pharmaceuticals relying on e-commerce for their procurement and supply chain solutions. The North Indian E-commerce market has grown majorly in the past few years and is expected to retain this growth during the forecast period. The people of the Northeast have always been known for their unique and elegant sense of style. Rock culture, which is renowned in a number of towns in this region, including Shillong, Guwahati, Gangtok, Aizwal, and others, has instilled strong fashion sensibilities in the people of these states, just as it does in any other metropolitan and urban Indian metropolis. That's why branded fashion accessories and apparel sell out so rapidly on the internet. These are the key factor that is expected to drive the growth of the market in North India during the forecast period.

India E-commerce Market Segment Analysis

Based on the End-Users: The Internet service providers segment is expected to grow rapidly at a high CAGR during the forecast period. The number of people using the internet in India is growing by leaps and bounds. Almost every home, individual, and business now has access to the internet. In India, a number of public and private sector telecom behemoths have emerged, each offering specialized internet solutions. In India, internet service providers have a long history of providing high-quality internet services that meet the needs and budgets of their customers. The Internet and WWW provide the opportunity to expand E-commerce activity throughout the contract cycle, allowing new providers to electronically service new clients. Business-to-business and business-to-consumer transactions are both possible on the WWW. These are the key factors that drive the growth of this segment. Based on the Operation: The E-Retail segment is expected to hold the largest India E-commerce market share by 2029. During the forecast period, e-retail sales in India are expected to grow by 32%, headed by Flipkart, Amazon India, and Paytm Mall. With a stake of 48%, electronics is the most popular online shopping category, followed by clothes with a share of 29%. Electronic tailing, commonly known as e-retailing, is the business of selling retail items through the Internet. E-retailing allows customers to buy goods or services directly from a seller via the Internet using a web browser. Customers find products online by comparing prices, product descriptions, and other characteristics on a variety of websites. They search for products on retailer websites or other electronic shopping outlets. These are the key drivers that are boosting the growth of this segment.

India E-commerce Market Competitive Landscape

As per the research, the Indian e-commerce market is highly competitive and is expected to remain high during the forecast period. This is attributed to the increasing demand for e-commerce in India and the increasing number of players entering the market. The Indian e-commerce companies compete on factors such as price, selection, convenience, and customer service.India E-commerce Market1Amazon launched its Prime Video Channels in India in September 2021. These channels provide its members with a seamless experience and access to various popular video streaming services. The company also launched its One District One product (ODOP) bazaar on its platform to support MSMEs in February 2022. Flipkart launched its “sell back program” to enable trade in smartphones in February 2022. The company also expanded its grocery services to 1,800 Indian cities.

India E-commerce Market Scope: Inquiry Before Buying

India E-commerce Market
Report Coverage Details
Base Year: 2022 Forecast Period: 2023-2029
Historical Data: 2018 to 2022 Market Size in 2022: US $ 51.57 Bn.
Forecast Period 2023 to 2029 CAGR: 31.13% Market Size in 2029: US $ 343.90 Bn.
Segments Covered: by Category BFSI Cloud service providers Social media platforms Content owners Logistics providers IoT devices Advertisers Search engines Internet service providers MSMEs
by Operation E-travel E-Retail Online financial services Online consumer services Digital content
by End-Users Domestic cross-border B2B and B2C Inventory based

India E-commerce Market, by Region

East India West India North India South India

India E-commerce Key Players

1. eBay 2. Amazon 3. Phone pay 4. Google 5. Flipkart 6. Snapdeal 7. Jabong 8. Myntra 9. Paytm 10. MakeMyTrip 11. Infibeam 12. Nykaa 13. Limeroad 14. 15. BigBasket 16. JioMart 17. Grofers

Frequently Asked Questions

1] What is the expected CAGR of the India E-commerce Market during the forecast period? Ans. During the forecast period, the Global India E-commerce Market is expected to grow at a CAGR of 31.13 percent. 2] What was the India E-commerce Market size in 2022? Ans. USD 51.57 Bn was the India E-commerce Market size in 2022. 3] What is the expected India E-commerce Market size by 2029? Ans. USD 343.90 Bn is the expected India E-commerce Market size by 2029. 4] What are the major India E-commerce Market segments? Ans. The market is divided by Category, Operation and End-Users. 5] Who are the key players in the Yacht Market? Ans. eBay, Amazon, Phone pay, Google, Flipkart, Snapdeal, Jabong, Myntra, Paytm, MakeMy Trip, Infibeam, Nykaa, Limeroad,, JioMart, BigBasket and Grofers
1. India E-commerce Market Introduction 1.1. Study Assumption and Market Definition 1.2. Scope of the Study 1.3. Executive Summary 2. India E-commerce Market: Dynamics 2.1. India E-commerce Market Trends 2.2. India E-commerce Market Dynamics 2.2.1. India E-commerce Market Drivers 2.2.2. India E-commerce Market Restraints 2.2.3. India E-commerce Market Opportunities 2.2.4. India E-commerce Market Challenges 2.3. PORTER’s Five Forces Analysis 2.4. PESTLE Analysis 2.5. Value Chain Analysis 2.6. Regulatory Landscape 2.7. Key Opinion Leader Analysis For India E-commerce Industry 2.8. Analysis of Government Schemes and Initiatives For India's E-commerce Industry 2.9. The Pandemic Impact on India's E-commerce Market 2.10. India E-commerce Price Trend Analysis (2021-22) 2.10.1. Chapter Overview 2.10.2. Key Assumptions and Methodology 3. India E-commerce Market: Market Size and Forecast by Segmentation by Demand and Supply Side (by Value) (2022-2029) 3.1. India E-commerce Market Size and Forecast, by Category (2022-2029) 3.1.1. Domestic 3.1.2. cross-border 3.1.3. B2B and B2C 3.1.4. Inventory based 3.2. India E-commerce Market Size and Forecast, by Operation (2022-2029) 3.2.1. E-travel 3.2.2. E-Retail 3.2.3. Online financial services 3.2.4. Online consumer services 3.2.5. Digital content 3.3. India E-commerce Market Size and Forecast, by End-Users (2022-2029) 3.3.1. BFSI 3.3.2. Cloud service providers 3.3.3. Social media platforms 3.3.4. Content owners 3.3.5. Logistics providers 3.3.6. IoT devices 3.3.7. Advertisers search engines 3.3.8. Internet services providers 3.3.9. MSMEs 4. India E-commerce Market: Competitive Landscape 4.1. MMR Competition Matrix 4.2. Competitive Landscape 4.3. Key Players Benchmarking 4.3.1. Company Name 4.3.2. Product Segment 4.3.3. End-user Segment 4.3.4. Revenue (2022) 4.3.5. Company Locations 4.4. Leading India E-commerce Companies, by market capitalization 4.5. Market Structure 4.5.1. Market Leaders 4.5.2. Market Followers 4.5.3. Emerging Players 4.6. Mergers and Acquisitions Details 5. Company Profile: Key Players 5.1. eBay 5.1.1. Company Overview 5.1.2. Business Portfolio 5.1.3. Financial Overview 5.1.4. SWOT Analysis 5.1.5. Strategic Analysis 5.1.6. Scale of Operation (small, medium, and large) 5.1.7. Details on Partnership 5.1.8. Regulatory Accreditations and Certifications Received by Them 5.1.9. Awards Received by the Firm 5.1.10. Recent Developments 5.2. Amazon 5.3. Phone pay 5.4. Google 5.5. Flipkart 5.6. Snapdeal 5.7. Jabong 5.8. Myntra 5.9. Paytm 5.10. MakeMy Trip 5.11. Infibeam 5.12. Nykaa 5.13. Limeroad 5.14. Shopclues 5.15. Naaptol Online Shopping Pvt. Ltd 5.16. Yepme -Vas Data Services Pvt Ltd 5.17. Tata Cliq 5.18. 5.19. BigBasket 5.20. JioMart 5.21. Grofers 6. Key Findings 7. Industry Recommendations 8. India E-commerce Market: Research Methodology 9. Terms and Glossary

About This Report

Report ID 44404
Category Information Technology & Telecommunication
Published Date Oct 2023
Updated Date