The Indian E-commerce market is expected to grow to US$ 200 billion by 2026. Industry growth been triggered by an increase in internet and smartphone penetration.
The ongoing digital transformation in the country is expected to increase India’s total internet user base to 829 million by 2021, India’s E-commerce revenue is expected to jump to US$ 140 billion by 2021, growing at an annual rate of 45%, the highest in the world.
Online retail sales in India primarily led by Flipkart, Amazon India and Paytm Mall has seen significant growth. In August 2020, Reliance Industries (RIL) acquired 60% stake in Netmeds, an online pharmacy, for Rs 620 crore (US$ 84.61 million). This acquisition gives RIL’s retail unit, Reliance Retail, entry into a vertical e-commerce space.
In January 2020, Divine Solitaires launched its E-commerce platform, Future Retail also acquired by Reliance Industries. Government e-Marketplace (GeM) signed a Memorandum of Understanding (MoU) with Union Bank of India to facilitate a cashless, paperless and transparent payment system for an array of services in October 2019.
In order to increase the participation of foreign players in E-commerce, Indian Government hiked the limit of FDI in E-commerce marketplace model to up to 100% (in B2B models).
E-commerce segment is also growing in terms of Foods business, grocery supply & small vendors like Retail vegetable seller, Manufacturer of Designer clothes, Furniture vendors are also joining the chain.
Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest E-commerce market in the world by 2034.
Road Ahead
E-commerce growth can be projected at more than 20% going forward.
E-commerce sector will also boost employment, increase revenues from export.
BENEFICIARIES: RELIANCE INDUSTRIES, V MART RETAIL, D MART, TRENT.
