E-Commerce

Reshaping the retail landscape of India, e-commerce has emerged as one of the prominent sectors catalyzing a digital revolution. With exponential growth in recent decades, the growing internet penetration is over 880 Mn as of March 2023, and the nation is home to ~250 Mn online shoppers, giving a notable boost to the e-commerce industry.

The ease of digital payment through BHIM UPI on e-commerce websites has eased the operational activities of platforms like Flipkart, Amazon, etc., thereby increasing the online shopping and retail business beyond fashion trends and essential commodities.

To incorporate the growing business activities of Micro, Small, and Medium Enterprises (MSMEs) and boost e-commerce exports, the Indian government has collaborated with various e-commerce players to leverage the Districts as Export Hubs initiative, and DGFT has signed a Memorandum of Understanding (MoU) with Amazon India to co-create capacity building sessions, training, and workshops for MSMEs in districts identified by DGFT. To reach the target of $1 Tn merchandise export by 2030 under Foreign Trade Policy 2023, e-commerce, which gives access to a larger global market, will play a pivotal role in India's export journey, and the country aims to increase its e-commerce exports to $200-300 Bn in the same time frame.

Various initiatives, such as Digital India and Skill India, aim to transform India into a digitally empowered society by facilitating digital access, inclusion, and empowerment. This is achieved by providing high-quality educational programs through DTH channels to a significant portion of the Indian population, with a particular focus on rural areas. The Open Network for Digital Commerce (ONDC) aims to democratize digital commerce by providing a level playing field for all e-commerce models and lowering the entry barriers to digital commerce. Furthermore, the Foreign Trade Policy 2023 targets to enable cross-border e-commerce for artisans, weavers, craftsmen, and MSMEs, in coordination with stakeholder departments. The policy aims to achieve a higher share of exports in addition to higher levels of profits for entrepreneurs associated with sectors like textiles and apparel, leather and footwear, handicrafts and home decor, beauty and personal care, Ayush and herbal products, and so on. India's adaptability to dynamism in the global market and sift in trends is a testament to its focus on the e-commerce industry.