E-commerce

The Indian e-commerce industry has been on an upward growth trajectory. In FY 2022-23, Government e-marketplace (GeM) registered its highest ever Gross Merchandise Value of $2011 Bn. GeM has achieved a cumulative GMV of more than INR 9.82 Lakh Cr (since inception) as on 30th July 2024. Hence, considering the saving estimates as reported above, GeM has facilitated savings worth more than INR 40,000 Cr since its inception. As per TRAI’s Indian Telecom Services Performance Indicators Apr-Jun 2024, the internet subscribers in India as of Sept 2024, are over 969 Mn, and the number of telephone subscribers as of Aug 2024 is over 1200 Mn.

The e-commerce industry in India is growing on levers such as increased smartphone penetration, increased affluence and low data prices, providing impetus for e-retail growth. With over 950 Mn users, India is the 2nd largest internet market in the world with 131.16 Lakh Cr UPI transactions in FY 2023-24.

Close to 100% of pin codes in India have seen e-commerce adoption. More than 60% of transactions and orders in India come from tier two cities and smaller towns. The e-commerce trend is gaining major popularity even in tier-2 and tier– 3 cities as they now make up nearly half of all shoppers and contribute three of every five orders for leading e-retail platforms. The average selling price (ASP) in tier-2 and smaller towns is only marginally lower than in tier-1/metro cities. Electronics and apparel make up nearly 70% of the e-commerce market, when evaluated against transaction value. Other new upcoming categories within e-commerce include ed-tech, hyperlocal and food-tech.

ONDC, a network launched by the Government of India in 2022, aims to provide equal opportunities to MSMEs to thrive in digital commerce and democratize e-commerce. In 2022, Indian e-commerce and consumer internet companies raised $15.4 Bn in PE/VC funding, 2x increase from $8.2 Bn in 2020.