India’s e-commerce landscape
Despite the high internet speeds and widespread smartphone usage, the majority of participants in the e-commerce are unable to reap the benefits of this digital revolution.
-
Korea
26%
-
China
25%
-
UK
23%
-
India
4.3%
E-Retail Penetration
850
(2.55%)
2018
903
(3%)
2019
883
(4.3%)
2020
Total Retail GMV
Online Retail GMV
- In FY23, the Gross Merchandise Value (GMV) of e-commerce reached US$ 60 billion, increasing 22% over the previous year. In FY22, the GMV of e-commerce stood at US$ 49 billion. The E-Commerce market is expected to touch $350 Bn in GMV by 2030.
- India's online retail market size is expected to reach US$ 325 billion by 2030, up from US$ 70 billion in 2022, largely due to the rapid expansion of e-commerce in tier-2 and tier-3 cities.
- The e-commerce market’s share of Tier-3 cities grew from 34.2% in 2021 to 41.5% in 2022.
- According to Grant Thornton, e-commerce in India is expected to be worth US$ 188 billion by 2025.
- After China and the US, India had the third-largest online shopper base of 150 million in FY21 and is expected to be 350 million by FY26.
- India has gained 125 million online shoppers in the past three years, with another 80 million expected to join by 2025, according to a report by Kantar.
Observation
The COVID-19 pandemic exposed the critical shortcomings of the Indian digital commerce ecosystem when most parts of the retail chain were found to be digitally absent.
