October 17, 2017
In the next ten years, e-commerce sales in India will grow 30 percent annually to about $200 billion, according to a new report. The Morgan Stanley report, India’s Digital Leap—The Multi-Trillion-Dollar Opportunity, said Indian consumers are reaching an inflection point in Internet adoption where they will move rapidly from mostly using it for messaging, search and social media to making purchases.
Currently, only 30 percent of India’s 432 million Internet users have been online for more than five years, when they begin to feel most comfortable conducting monetary transactions online. Only 60 million of them are shopping. By 2026, the report said, more than 50 percent of the country’s Internet user base will be making purchases.
“We believe Internet access will double in the next 10 years,” said Ridham Desai, head of India research for Morgan Stanley, “and we estimate that 915 million Indians will be on the Internet by 2026.”
E-commerce growth in India will be so fast, some experts believe it will surpass the U.S. for the second-largest e-commerce market in the world within 20 years.