India's digital economy is on the brink of a monumental transformation, with forecasts predicting a remarkable surge in the e-commerce market to a staggering $325 billion and the country's digital economy reaching an unprecedented $800 billion by 2030.
Riding on the back of its burgeoning internet user base, which stands at a formidable 881 million, India is set to solidify its position as a global e-commerce powerhouse, as per insights from Invest India.
With the second-largest internet user base globally, India is slated to ascend to the third spot in the online retail industry by 2030, driven by the exponential growth of its digital economy.
It is anticipated that the country will witness a monumental surge in online shopping, with an estimated 500 million buyers actively participating in e-commerce transactions.
Presently valued at $70 billion, the Indian e-commerce market represents approximately 7% of the nation's total retail market.
However, with the burgeoning digital ecosystem and internet penetration, this figure is expected to soar in the coming years.
One of the driving forces behind this growth trajectory is the expanding internet penetration, with an estimated 87% of Indian households projected to be connected to the internet by 2025.
Further, the duration of internet access via mobile devices has witnessed a substantial uptick, experiencing a 21% increase compared to 2019.
The number of online shoppers in India is set to witness a robust expansion, with a compound annual growth rate (CAGR) of 22% anticipated, leading to an estimated 88 million online shoppers in rural India and 263 million in urban areas between 2019 and 2026.
India's affordability in data prices is identified as a pivotal factor contributing to the surge in internet usage, with the cost of one gigabyte of data averaging around $0.17 (Rs 13.5).
Follow us
