India's e-com market to rise to $550 bn by 2035: Report

The country’s e-commerce market size stood at $125 billion last year. It is likely to touch $345 billion by 2030-end.

While favourable demographics, rising income, evolving consumer preferences, easy credit availability and brand consciousness are the key growth drivers of Indian retail, increasing Internet penetration, smartphone adoption, digital payment infrastructure and a young, tech-savvy population are driving the growth of the e-commerce market, the report jointly released by Anarock and ETRetail noted.

The share of organised retail is projected to increase from 12 per cent in 2023 to 17 per cent by 2035.

E-commerce growth in tier-2 and tier-3 cities is accelerating, with such cities making up over half of total shopping in the past couple of years, outpacing tier-1 markets.

Online shopping is expected to account for nearly 65 per cent of retail shopping by 2030.

Government initiatives like 'Digital India', omni-channel retailing and rapid improvements in the country's logistics and supply chain networks have further boosted growth prospects of e-commerce in the country.

Following the pandemic, digital penetration has been steadily increasing, with online retail accounting for approximately 8 per cent of total retail in fiscal 2023-24. This share is projected to further rise to 18 per cent by fiscal 2029-30.

Fibre2Fashion News Desk (DS)