India’s e-commerce market to reach $147.3b in 2024

It will be driven by the expanding internet penetration and better digital payment infrastructure.

India's e-commerce market is set to grow by 23.8% in 2024, reaching $147.3b (INR 12.2 t), driven by rising consumer demand for online shopping and increased internet access, according to GlobalData.

The market is expected to continue growing, with a projected value of $292.3 b (INR 24.1 t) by 2028, reflecting an 18.7% compound annual growth rate (CAGR) from 2024 to 2028.

Ravi Sharma, lead banking and payments analyst at GlobalData, said the growth is supported by expanding internet penetration, especially in rural areas, and better digital payment infrastructure. He also pointed to the boost from online shopping events.

According to the Telecom Regulatory Authority of India, India had 954 million internet subscribers as of March, up from 881 million a year earlier, which is encouraging more small and medium-sized businesses (SMEs) to enter the e-commerce market.

The report added that major e-commerce platforms like Flipkart, Amazon, and Myntra have also helped drive growth with discounts and cashback offers during events such as Flipkart’s Big Billion Days, Amazon’s Great Indian Sale, and Myntra’s Big Fashion Festival Sale.

In payment preferences, mobile wallets and digital payment solutions are now the most popular methods. GlobalData’s 2024 Financial Services Consumer Survey shows 30% of respondents use Google Pay most often for online shopping, followed by PhonePe and Amazon Pay at 13% each.

E-commerce platforms are also embracing QR code Pay-On-Delivery options, allowing consumers to pay with UPI apps like Google Pay, PhonePe, and MobiKwik.

“The uptrend in e-commerce sales in India is likely to continue over the next few years, supported by improving payment infrastructure and the growing popularity of alternative payment solutions,” Sharma said.