E-Commerce in India: Growth and Trends


  • Dr. Sindhuja Gupta


E-commerce one of the highest growing business, with India having great market potential for investments.  There has been huge surge in investment since last year and more is accepted in coming years. The rapid growth of mobile and internet users has facilitated e-commerce business in both urban and rural cities. With an online population of 500 million in 2017, India has one of the fastest growing internet populations in the world. A compound annual growth rate (CAGR) of 13 percent will take the number of online users to 720 million, close to where China is currently. The CAGR of the Indian online user growth is nearly four times that of global rate. The Indian e-commerce has seen a steady growth over the years from 2014 and is currently pegged at $53 billion. With a growth of 25 percent , the Indian e-commerce industry is expected to cross the $100 billion mark by 2020 .India has an internet users base of about 475 million as of July 2018, about 40% of the population. Despite being the second largest user base in world, only behind China (650million, 48% of population), the penetration of ecommerce is low compared to markets like the United states (266 million, 84%), or France (54 M, 81%), but is growing at an unprecedented rate , adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point. In India, cash on delivery is the most preferred payment method, accumulating 75% of the e-retail activities. Demand for international consumer products is growing much faster than in-country supply from authorised distributors and e-commerce offerings. The present study makes use of secondary data. The methodology used is collection of data from various journals, published books, and research studies, research articles, magazines and newspapers along with internet.

Finally, it has been concluded that ecommerce will result in high economic development and there will be an emergence of a more innovative and advanced technology.