E-Commerce Market Growth In India See Latest Updates Here

India has now become the world's fastest-growing e-commerce marketplace.

E-Commerce in India
E-Commerce Market Growth In India See Latest Updates Here

The trajectory of the Indian e-commerce industry continues to ascend, marked by significant milestones. In FY 2022-23, the Government e-Marketplace (GeM) achieved a record Gross Merchandise Value of $2011 Bn. Since its inception, GeM has amassed a cumulative GMV exceeding 4.5 Lakh Cr, translating into savings surpassing INR 40,000 Cr, as estimated from the reported figures.

As of March 2023, India boasts an internet penetration of over 880 Mn, according to TRAI's Indian Telecom Services Performance Indicators. The number of telecom subscribers during the same period stands at over 1172 Mn. This robust connectivity lays the foundation for the flourishing e-commerce landscape.

The driving forces behind the industry's growth include augmented smartphone penetration, rising affluence, and affordable data prices, fostering substantial growth in e-retail. With a staggering 800 Mn users, India proudly holds the position of the world's second-largest internet market, witnessing a remarkable 125.94 Lakh Cr UPI transactions in 2022.

E-commerce adoption has reached close to 100% of pin codes in India, with over 60% of transactions originating from tier two cities and smaller towns. Tier-2 and tier-3 cities are emerging as pivotal players, constituting nearly half of all shoppers and contributing three out of every five orders on leading e-retail platforms. Despite a marginal difference in the average selling price (ASP), tier-2 and smaller towns are making a substantial impact.

Examining the market dynamics, electronics and apparel dominate the e-commerce landscape, constituting nearly 70% of transactions by value. New and burgeoning categories such as ed-tech, hyperlocal, and food-tech are gaining prominence.

In a bid to foster equal opportunities for MSMEs in the digital commerce realm, the Government of India launched the Open Network for Digital Commerce (ONDC) in 2022. This initiative aims to democratize e-commerce and provide a level playing field for small and medium enterprises.

Noteworthy is the funding surge in the Indian e-commerce and consumer internet sector. In 2022, companies in this space secured a remarkable $15.4 Bn in PE/VC funding, marking a significant two-fold increase from the $8.2 Bn recorded in 2020. This influx of capital underscores the confidence and enthusiasm surrounding the future growth of the Indian e-commerce landscape.


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