According to a report by Invest India, India currently has the second largest internet user base in the world with a whopping 881 million users. This strong user base positions India as a prime candidate to become the world's third largest online retail market by 2030.
E-commerce expected to reach USD 325 billion by 2030, with rural India at the center of expansion drive: Report (Image source: iStock)
India's e-commerce the landscape is ready growth, is predicted to soar to USD 325 billion by 2030. This expansion is digital economywhich is predicted to reach a staggering US$800 billion within the same period.
Digital Foundation: 2nd largest internet user base
According to a report by Invest India, India currently has the second largest internet user base in the world with a whopping 881 million users. This strong user base positions India as a prime candidate to become the world's third largest online retail market by 2030. This growth is supported by the country's rapidly expanding internet access and thriving digital economy.
Factors driving e-commerce growth
easy internet access
Invest India highlights the rapid rise in internet penetration and predicts that by 2025, around 87 per cent of Indian households will have access to the internet.
Growing online shopper base
The report predicts a rapid increase in the number of online shoppers, with strong growth rates in both rural and urban areas. This growth is being driven by factors such as increased internet penetration and increased digital literacy.
affordable data rates
India's incredibly affordable data plans play a pivotal role in driving the uptake of e-commerce. Access to affordable data services is bringing more individuals online and contributing to the expansion of the e-commerce market.
Key drivers of the e-commerce boom
Invest India identifies several key factors contributing to India's e-commerce boom.
– Increasing smartphone penetration rate
– Advantages of Unified Payments Interface (UPI) in digital transactions
– Increase the availability of local language content and enhance accessibility for diverse segments of the population
Acceptance of locally-led e-commerce
Invest India highlights the shift towards rural-driven e-commerce, with a significant portion of demand expected to come from tier 2-4 towns and rural areas by 2026 . Government initiatives and the emergence of quick commerce are further reinforcing this trend and facilitating greater participation. From rural consumers in the digital market.
Envisioning India's status as an e-commerce powerhouse
Invest India's report paints a compelling picture of India's path to becoming a global e-commerce powerhouse by 2030. The convergence of a rapidly growing Internet user base, affordable data access, and supportive digital infrastructure will lay the foundation for this transformative evolution.
