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The India e-commerce market reached approximately USD 104.97 Billion in 2025. The market is projected to grow at a CAGR of 17.10% between 2026 and 2035, reaching a value of around USD 508.90 Billion by 2035.
Base Year
Historical Period
Forecast Period
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.
Compound Annual Growth Rate
17.1%
Value in USD Billion
2026-2035
*this image is indicative*
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 India e-commerce market growth.
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 e-commerce demand.
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.
Increasing internet penetration, growing smartphone users, rising foreign investments and expanding retail sector are key factors increasing the India e-commerce market value.
Increasing internet penetration is enhancing the accessibility of e-commerce platforms for a majority of urban and rural customers. According to the TRAI’s estimates, overall internet penetration in India by March 2023 was 61.62% with 850.95 million internet subscribers, led primarily by larger states such as Maharashtra and Uttar Pradesh. This percentage is expected to increase with the roll of high bandwidth 4G and 5G networks, encouraging consumers to increasingly showcase online shopping activity.
Most online shoppers prefer to buy mobile phones on ecommerce sites due to convenience and flexibility. Hence, the growing number of mobile phone users in the country is leading to the market expansion. According to the Indian Ministry of Information and Broadcasting, India had over 1.2 billion mobile phone users and 600 million smart phone users as of November 2022. With rising disposable income, this number is expected to rise sharply in the coming years, having a positive impact on the India ecommerce industry.
India's e-commerce sector has attracted significant foreign investment in recent years, with global investors seeing the country as a high-growth market. Companies like Amazon, Walmart (via Flipkart), and other international players have heavily invested in local platforms, fueling innovation, infrastructure development, and competition. For instance, Amazon recently announced that it would increase its investment in India by USD 15 billion over the next seven years. Such moves are expected to increase the value of the market in the long run.
India’s retail sector is expanding rapidly owing the rise in household expenditure over the years. It currently accounts for over 10% of the country’s GDP and around 8% of the total workforce. Since most ecommerce platforms in India operate in the retail B2C and D2C models, the growth of the retail sector is estimated to have an enormous impact on the development of the ecommerce industry.
“India E-Commerce Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Industry
Market Breakup by Region
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.
Market players are incorporating AI-powered chatbots and virtual assistants to improve customer service and offer real-time support and to gain competitive edge.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 104.97 Billion.
The India e-commerce market is projected to grow at a CAGR of 17.10% between 2026 and 2035.
The market is estimated to witness healthy growth during 2026-2035 to reach around USD 508.90 Billion by 2035.
North India, East and Central India, West India, and South India are the regions considered in market report.
Business-to-consumer (B2C) and business-to-business (B2B) are the two types of e-commerce.
The factors aiding the growth of the market are rising internet penetration, increasing disposable income, and rising availability of brands in online channels, presence of favourable government initiatives supporting digitisation, and increasing sales of smartphones.
The major industries include beauty and personal care, fashion and apparel, consumer electronics, food and beverage, health and wellness, home décor, and household consumables, among others.
The major players in the market are 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, and IndiaMART InterMESH Ltd, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Industry |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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