The investment promotion and facilitation agency Invest India has stated in research that by 2030, the e-commerce sector in India is expected to witness a significant expansion.
The survey said that the country’s digital economy is forecast to reach an astonishing $800 billion by the same period, with a considerable jump predicted to $325 billion by 2030.
With an estimated valuation of $70 billion, e-commerce in India accounts for only 7% of the nation’s overall retail business, meaning there is significant room for expansion.
Many factors, including strong internet penetration, affordable internet services, and a significant rise in rural smartphone users, are anticipated to drive the industry toward a bright future in the upcoming years.
India has the second largest internet user base in the world, with 881 million users, and is expected to become the third largest online retail market by 2030 as a result of the country’s rapidly growing digital economy, according to the research.
Low-cost Internet That Encourages Online Purchasing
According to the survey, India, which is expected to have 500 million online buyers by 2030, will spearhead the online shopping revolution.
With 87% of Indian homes predicted to have internet access by 2025, Invest India emphasized the nation’s rising internet penetration, highlighting the country’s robust mobile internet usage due to affordable plans.
With a gigabyte of data costing roughly $0.17 (Rs 13.5), affordability is a major factor in India’s internet penetration, the survey stated.
This encourages a sizable portion of the populace to choose online activities.
According to the report, the rise in mobile data traffic between 2018 and 2023 highlights how increasingly different requirements are being met by digital platforms.
It is anticipated that more than 1.18 billion Indians, or more than 80% of the country’s population, will have access to smartphones by 2026.
The digital economy will benefit from this increase in smartphone users as well as increased average data usage per user.
By 2022, the Unified Payments Interface (UPI) will have become a major player in digital transactions, enabling transactions valued at $1.5 trillion.
The Growing Population of Smartphone Users
The paper also examined other significant factors that contributed to the e-commerce boom, such as the growing number of smartphone users, the prevalence of the Unified Payments Interface (UPI) in online purchases, and the expansion of locally available content.
Notable is the rise in mobile-first content and local language usage, over 73% of Indian internet users communicate in Indian languages.
As a result, 540 million people are thought to be using regional languages, creating a $53 billion market.
Growth in e-commerce Is Mostly Being Driven By Rural India.
Invest India highlights the increasing importance of e-commerce that is focused on rural areas, predicting that by 2026, a substantial amount of demand will come from tier 2-4 towns and rural areas.
Government measures and the rise of fast commerce serve to further encourage this trend.
According to Invest India’s data, the Government e-marketplace (GeM) reached its highest-ever Gross Merchandise Value of $2011 billion in the fiscal year 2022-2023.
Online shopping is expected to develop significantly in India between 2019 and 2026, with a compound annual growth rate (CAGR) of 22% to 88 million in rural India and 15% to 263 million in urban India.
There has been a noticeable shift towards value e-commerce that is focussed on rural areas, by 2026, over 60% of demand is predicted to originate from tier 2-4 towns and rural India, as mentioned above.
The National Logistics Policy is one of the government’s programs that aims to improve the cost-effectiveness and logistical efficiency of supplies to remote places.
Significant Market Share Will Be Gained by Zomato and Swiggy.
Within India’s hyperlocal mobility sector, the fast commerce market is expected to grow at an exponential rate, with a projected market value of USD 5.5 billion by 2025.
Prominent corporations such as Swiggy and Zomato drive this sector, and upstarts like Zepto also capture a large portion of the market.
Significant mergers and acquisitions occur in the e-commerce space, as businesses like Zomato and PhonePe carefully position themselves for expansion.
Explicit Infra Development: “Unmissable Aspect”
Dear reader, we shouldn’t miss the point that India has carried out massive infra development in past some years which contributes to such rising demand from rural and semi-urban areas.
Clearly, the presence of roads and highways prompt trucks and lorries to simply drive on and ferry freight smoothly. Villages and remote areas are now well-connected with roads and bridges and this has aided in the development of logistics and strengthened SCM (Supply Chain Management).
Well dear reader, let’s see how fast we would reach the figure targets as highlighted in the prediction, let’s be hopeful to the ongoing prosperity and to envy of foes. 🙂
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