The e-commerce market is noticing a continuous growth and development across the world. India has been also going under a massive evolution in the sector of shopping after the introduction of the e-commerce market.
The use of smartphones and similar devices have been the major reasons for an increase in e-commerce shopping activities among customers now. Due to this, several companies are opening up e-commerce businesses and are thriving happily in the market.
Whether it is a fashion brand, electronics, or any other items, the e-commerce market is continuously growing each year in India with a pretty impressive figure.
The E-commerce Market Size in India
Earlier the e-commerce market was concentrated more among youngsters and teenagers. But now when the use of smartphones and the internet has become the new normal among people of various age groups. Thus, this has also led to an increase in the demand for e-commerce services.
In the year 2017, the e-commerce market size in India was an average of US$30 billion. Some of the major companies that have been offering the customers with the best platforms were Amazon India, Flipkart, Paytm Mall, and so on.
The internet penetration in the year 2007 in India was just 4% that drastically increased to about more than 52% by the year 2019. Also, the e-commerce market is expected to be reported as US$84 for the year 2020-2021. (Source) Also, the experts are expected that this figure will also increase up to US$200 by the year 2021. (Source)
Some of the major names such as Reliance, Amazon India, Flipkart, Swiggy, and many others have been coming up with several initiatives to offer an even better experience to the customers. The Indian market has accepted such initiatives in a much better way and this has increased the revenue of the companies. When we discussed this with Vikash Khetan of CouponzGuru.com, a leading coupons and deals aggregator in India, he said “Covid-19 has created an immense opportunity for Indian E-Commerce, it has helped e-commerce see unprecedented growth in last 9 months, the similar growth could have taken atleast 3 years otherwise. One of the major benefits have been organic addition of new users in Indian E-Commerce. These are encouraging signs.”
Initiatives from the India Government
Along with the various e-commerce companies, the Indian Government has also extended its support to help the e-commerce market to increase in India.
The very first initiative taken up by the Government of India since 2014 was the concept of Digital India. Though one of the major reasons to do so was to control the black money and fraudulent activities, it also enhanced the e-commerce market in India.
Also, the Government has been investing in the plan of 5G internet network. This will have direct help for the customers who are indulged in online shopping and transactions. When the experience of high-speed internet is gained, this will surely increase the number of online transactions and online shopping activities.
Apart from such indirect initiatives, the Government also took some of the direct initiatives such as hiking up the limit of FDI. This helps the foreign e-commerce companies to participate even more in the Indian market.
As per the recent predictions, the use of smartphones and the internet in India should increase somewhere around 80% and higher by the year 2022. Definitely, this is going to increase the number of online transactions taking place for online shopping. The increasing number of online transactions has also motivated many small and medium business houses to have an online presence. The growth of the e-commerce market in India is calculated to be 51% recently that is the highest in the world.
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