How is growth of e-commerce in India?


E-commerce is the new era to do business all over the world. Similarly, it is helping in India. The Indian e-commerce industry is on an upward growth trajectory.  Furthermore, Compound Annual Growth Rate (CAGR) of e-commerce is expected to be 28 percent from 2016-20 to touch US$ 63.7 billion by 202

What is helping the growth of e-commerce industry?

  1. Internet: As smart-phone users are growing, the Internet is reaching to everyone.  This gives a major boost for online shopping.
  2. Government Role: Since 2014, the Government is working on various programs such as Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The implementation of such programs will help the e-commerce growth in the country.
  3. Investments: In addition, e-commerce start-ups are receiving funds from many investment firms at domestic as well as international level.

What is ahead?

The e-commerce industry is impacting the micro, small & medium enterprises (MSME) in India. It is by providing means of financing, technology, and training and has a favorable cascading effect on other industries as well. The total size of e-Commerce industry in India is expected to reach US$ 101.9 billion by 2020.

Following technology-enabled innovations will likely support the growth in the sector:

  • digital payments
  • hyper-local logistics
  • analytics-driven customer engagement
  • digital advertisements. 

With the increase in the number of electronic payment gateways and mobile wallets, the cashless transaction will constitute 55 percent of the online sales by the end of 2020. Furthermore, the growth in e-commerce sector will boost employment. Also, it will increase revenues from export, increase tax collection by ex-chequers, and provide better products and services to customers in the long-term.

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