India's e-commerce market set to become third largest in the world: RedSeer

By

Isabelle Crossley

Published
Jul 1, 2021

India’s e-commerce market is expected to grow significantly with a strong adoption of online services across the country, which will contribute to it becoming the world’s third largest digital economy by 2030. 

 
India’s e-commerce sector, in which fashion is the second largest category after electronics, is expected to become a US$800 billion (Rs 53.2 lakh crore) market by 2030, according to a new report by consulting business RedSeer, accessed by the Press Trust of India.

The Indian e-commerce market was valued at between $80 billion to $90 billion in 2020, meaning it will grow by over eight times in the coming decade and follow the U.S. and China as the third largest digital economy. 

“Today, over 50% of customers say they use online services because of convenience,” said RedSeer’s founder and CEO Anil Kumar, the Press Trust of India reported. “A few years back, almost 70% used to say the key reason is discounting but with the hit of Covid, digital services have undoubtedly served the customers very well, which is evident in high customer satisfaction and customers’ willingness to keep using the digital as a key channel to fulfil their needs.”
 
Online annual gross merchandise value is predicted to increase from $55 billion in 2021 to $350 billion by 2030, RedSeer announced at its recent Ground Zero 5.0 event. The significant increase in online business will call for a large rise in logistics services across the country which will crease a range of direct and indirect employment opportunities. 
 
The current trend of increased online adoption in rural areas is also expected to continue throughout the 2020s. According to RedSeer’s data, 88% of online shoppers that will shop for the first time from 2020 to 2030 will be from tier 2 cities and beyond.