India E-Commerce Market Report and Forecast 2024-2032

India E-Commerce Market Size

The India e-commerce market reached approximately USD 89.64 billion in 2023. The market is projected to grow at a CAGR of 17.10% between 2024 and 2032, reaching a value of around USD 369.77 billion by 2032.

India E-Commerce Market Outlook

• As per industry reports, it is expected that 87% of Indian households will have internet access by 2025.

• In FY23, the procurement of goods and services from the government portal passed USD 24 billion.

• By 2030, the Indian market for e-commerce is anticipated to have a gross merchandise value of USD 350 billion, making it the third largest e-commerce market globally.

India E-Commerce Market Growth

In 2021, the internet penetration in India reached 830 million, majorly driven by the Digital India programme. As of 2023, approximately 55% of India's total internet connections were in urban areas, with 97% of these urban connections being wireless. The significant increase in internet use and smartphone penetration are key factors aiding the growth of the e-commerce market in India.

Additionally, the increase in digital literacy has led to a significant number of investments in E-commerce firms, levelling the market for new players to set up their base while developing innovative patterns to disrupt old functioning.

Furthermore, the e-commerce sector has transformed the way business is carried out in the country and has opened several segments of commerce including business-to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C), and consumer-to-business (C2B). The government of India has laid out policies to support B2B e-commerce. 100% FDI is allotted for the B2B e-commerce sector in India. Moreover, 100% FDI under the automatic route is allowed in the marketplace model of e-commerce, further supporting the market growth.

India's robust e-commerce infrastructure, including logistics networks, digital payment systems like UPI, and initiatives like ONDC, Account Aggregators, and OCEN, has set the stage for the rapid growth of B2B marketplaces in the country. These advancements are poised to revolutionise the e-commerce market by enabling seamless transactions, improving supply chain efficiency, and fostering greater inclusion of small and medium enterprises (SMEs) in the digital economy.

India E-Commerce Industry Segmentation

India E-Commerce Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Business to Consumer (B2C)

• Business to Business (B2B)

Market Breakup by Industry

• Beauty and Personal Care

• Fashion and Apparel

• Consumer Electronics

• Food and Beverage

• Health and Wellness

• Home Decor

• Household Consumables

• Others

Market Breakup by Region

• North India

• East and Central India

• West India

• South India

India E-Commerce Market Share

Reportedly, Visakhapatnam, Ghaziabad, and Faridabad are gaining traction as e-commerce hotspots in India. Visakhapatnam has the presence of several fulfillment centres, while Ghaziabad and Faridabad benefit due to their proximity to the national capital.  Bangalore, known as the Silicon Valley of India, has the presence of headquarters of major e-commerce players, such as Flipkart, Amazon, and Myntra, marking it as a spotlight in the global e-commerce landscape.

Leading Companies in India E-Commerce Market

Market players are incorporating AI-powered chatbots and virtual assistants to improve customer service and offer real-time support and to gain competitive edge

• Amazon.com, Inc.

• Walmart Inc.

• Flipkart Private Limited 

• Alibaba Group Holding Ltd.

• Shopify Inc.

• Etsy, Inc.

• AceVector Limited (Snapdeal Ltd.) 

• Fashnear Technologies Private Limited (Meesho)  

• Fsn E-Commerce Ventures Ltd

• IndiaMART InterMESH Ltd

• Others

Key Highlights of the Report