India's e-commerce market has grown to a staggering $325 billion, and by the same year, the country's digital economy is expected to reach a staggering $800 billion. According to Invest India, with 881 million users, India has the second-largest internet user base in the world and is expected to become the third largest online retailer by 2030. It is expected to rise.
With the growth of the digital economy
One of the key factors is the increase in internet penetration, with approximately 87% of Indian households expected to be connected to the internet by 2025. However, the duration of mobile internet access has increased by 21% compared to 2019.
Number of online shoppers in India will grow at a compound annual rate of 22% to 88 million in rural India and 15% to 263 million across urban India between 2019 and 2026 It is predicted to increase at (CAGR). India's affordable data prices also play a role. This plays a vital role, with 1 gigabyte of data costing around $0.17 (Rs. 13.5 rupees), moving a large portion of the population online.
Additionally, the growth in smartphone users, expected to reach 1.18 billion by 2026, combined with the increase in average data consumption per user, will further drive the digital economy. Mobile data traffic will triple from 2018 to 2023, indicating an increased reliance on digital platforms for various needs.
Unified Payments Interface (UPI) has emerged as a significant player in digital payments, accounting for $1.5 trillion in transactions in 2022. By 2026, 81 percent of India's population is expected to have access to a smartphone.
The usage of local language and mobile-first content is rapidly increasing, with around 73% of Indian internet subscribers using Indian languages. This brings his estimated regional language base to his 540 million and market size to his $53 billion.
Digital infrastructure such as UPI, eKYC, and Aadhaar has reduced consumer onboarding time by 80% and further streamlined the digital experience. We are seeing a major shift towards rural-driven value e-commerce, with over 60% of demand expected to be driven by tier 2 to 4 towns and rural India by 2026 . Government initiatives such as the National Logistics Policy aim to facilitate deliveries to the hinterland. We make logistics efficient and cost effective.
In hyperlocal mobility, India's quick commerce market is expected to reach a market size of $5.5 billion by 2025. Companies like Swiggy and Zomato are leading the market and are introducing new micro-segments such as automobiles.
Furthermore, social commerce is expected to reach a market size of $70 billion by 2030, and small-scale video applications are gaining widespread attention. Major mergers and acquisitions in the e-commerce space have been notable, with companies like Zomato and PhonePe making strategic moves to strengthen their positions.
(using input from ANI)
