The overall transaction value of the Indian e-commerce market is projected to grow from INR3.4 trillion (US$49bn) in 2019 to INR6.3 trillion (US$91bn) in 2023, says GlobalData, the data and analytics company.
GlobalData’s latest report, ‘India Cards & Payments: Opportunities and Risks to 2023’, states that the growth in the e-commerce market has been supported by rising Internet penetration rates, benefits such as discounts, faster delivery options offered by e-retailers and the rising consumer preference for online shopping.
Shivani Gupta, Senior Banking and Payments Analyst at GlobalData, comments: “Along with rising Indian shoppers going online, the government has also made efforts to boost the country’s e-commerce market with initiatives such as Startup India, Make in India and Digital India; all of which have contributed positively towards the growth of the e-commerce industry.”
With Indians being increasingly price-sensitive, the growth of e-commerce can be attributed to the benefits offered by online retailers such as discounts, cash-back and loyalty points on purchases. Annual online sale festivals such as ‘Flipkart Big Billion Days’ and ‘Amazon Great Indian Sale’ too have resulted in the exponential growth of e-commerce sales.
Retailers are also extending their product lines to further penetrate into the market. In May 2019, Flipkart launched online grocery store ‘Supermart’, extending its presence from fast-moving consumer goods to groceries.
Shivani concludes: “The underlying potential for online purchases, coupled with favorable government policies, and online shopping events are expected to further drive the e-commerce market in India.”