June 12, 2018
Retail e-commerce in India will grow 31 percent this year to $32.7 billion, according to research by eMarketer. While the overall number currently pales in comparison to China and the U.S. (the top two e-commerce markets in the world), experts believe conditions in India will be ripe for continued growth. In fact, by one measure India will surpass the U.S. for the second spot by 2034.
According to eMarketer, one-quarter of India’s 1.3 billion people will shop online in 2018. By 2022, the New York-based marketing research firm expects that number to jump to 41.6 percent. Online marketplaces will pace the growth, according to Eric Haggstrom, forecasting analyst at eMarketer.
“E-commerce is booming in India thanks to increased internet users and cheaper smartphones,” said Haggstrom. “In tandem with this shift to online and mobile usage, Flipkart, Amazon and Paytm Mall have been competing fiercely to claim their share of the Indian market. All three of these companies are making large investments, which include improved logistics and payment systems, as well as offering deep discounts, which will fuel future growth in the market.”