E commerce market in India likely to be world’s third-largest by 2030

India’s e-commerce market is expected to develop significantly to $325 billion by 2030, while the country’s digital economy is expected to rise to $800 billion in the same period.

With an astounding 881 million users, India has the second-largest internet user base in the world, according to Invest India. Due to the country’s booming digital economy and fast growing internet user base, India is expected to become the third-largest online retail market by 2030.

The report envisions India leading the charge in online shopping, with an estimated 500 million shoppers anticipated by 2030. This growth is attributed to various factors:

1. Increased Internet Accessibility: Invest India underscores the escalating internet penetration, forecasting that 87% of Indian households will have internet access by 2025. Notably, mobile internet usage witnesses a significant surge, with extended access duration.
2. Expanding Online Shopper Base: The report predicts a rise in the number of online shoppers, with robust growth rates expected in both rural and urban areas.
3. Affordable Data Plans: India’s highly affordable data packages play a pivotal role in driving e-commerce adoption, facilitating broader online access.

Additionally, the paper explores other noteworthy factors driving this spike in e-commerce, including the growing population of smartphone users, the expanding use of Unified Payments Interface (UPI) in digital transactions, and the growing availability of content in regional languages.

Invest India also highlights the shift towards rural-centric e-commerce, with a substantial portion of demand projected to emanate from tier 2-4 towns and rural regions by 2026. Government initiatives and the emergence of quick commerce further reinforce this trend.

In essence, Invest India’s report paints a compelling vision of India’s evolution into a global e-commerce force by 2030. The convergence of a burgeoning internet user base, cost-effective data accessibility, and a supportive digital infrastructure sets the stage for this promising trajectory.