August 24, 2016
Indian E-Commerce to Reach $18 Billion by 2015
Feb. 10, 2014
As part of the acronym BRIC, the opportunity for e-commerce companies in India has long been acknowledged. Last week, an Australian investment research company tried to pin down exactly how much of an opportunity exists there, forecasting growth in e-commerce will reach $18 billion by 2015. Macquarie Equities Research said e-commerce in India is still nascent, giving it plenty of room for huge growth.
“Compared to the west, India’s ecommerce industry is still in its infancy,” said Atul Soni and Nitin Mohta, the report’s authors. “E-commerce contributes only 0.6 percent of the country’s GDP vs. 1-3 percent for other countries, with only 12 percent of India’s online population transacting online vs 64 percent for the U.S. and over 50 percent for China.”
The report noted e-commerce has experienced a 30 percent CAGR in the past five years and that travel dominates e-commerce currently, accounting for 71 percent of e-commerce spending. The fastest growing e-commerce segment in India is retailing, according to Macquarie, which saw nearly 60 percent annual growth between 2009 and 2013 to 16 percent of the market.