Report: Indian E-Commerce to Grow 1000% to $100 Billion by 2020
Dec. 10, 2015
E-commerce in India will grow from $10 billion today to $100 billion by 2020, according to a report from KPMG and the Federation of Indian Chambers of Commerce and Industry (FICCI). While it has a long way to go to catch e-commerce sales in China (around $450 billion last year) and the U.S. ($305 billion), growth in India will be swift. At a news conference Tuesday in New Delhi, Department of Industrial Policy and Promotion Secretary Amitabh Kant said he expects the accelerating penetration of digital networks enabling Internet and mobile phone access in rural areas to push e-commerce toward $250 billion within 10 years.
“We would see several trends growing,” Kant said. “E-commerce has mushroomed in India recently. By 2017, India will have 350 million smartphones and we would have 500 million Indians connected to Internet. That will create a huge consumer opportunity.”
But one of the biggest challenges for e-commerce and other forms of direct selling in India, the report said, is the lack of regulatory clarity. The FICCI-KPMG report called for a series of reforms ranging from short-term fixes like amendments to existing regulations to longer-term measures like a separate regulatory regime for the industry.