India’s e-commerce market set for 23.8% growth in 2024

The growth is attributed to increased internet access and a shift towards online shopping.

The e-commerce market in India is set to grow by 23.8% in 2024, driven by rising online shopping trends and increased internet access, according to GlobalData. 

The market is expected to expand from $147.3b (INR 12.2t) in 2024 to $292.3b (INR 24.1t) by 2028, marking an 18.7% compound annual growth rate.

Ravi Sharma, lead banking and payments analyst at GlobalData, attributes this growth to higher internet and smartphone usage and a shift towards online shopping.

The Telecom Regulatory Authority of India reported 954 million internet subscribers as of March 2024, up from 881 million a year earlier. This increase is encouraging both domestic and international retailers like Flipkart, Amazon, and Myntra to offer promotions and discounts.

Alternative payment methods are now the most popular amongst Indian online shoppers, capturing 58% of the market share in 2023, as per GlobalData’s 2023 Financial Services Consumer Survey. 

Mobile and digital wallets, such as Amazon Pay and Google Pay, have replaced traditional payment methods.

Meanwhile, payment cards are the second most used option, holding 25.7% of the market. Cash usage for online purchases has dropped to 6.2%.

Electronic payments for pay-on-delivery orders, such as Flipkart's QR code option, are expected to further boost the sector. 

Government initiatives like "Make in India" and "Startup India" are also contributing to growth by supporting SMEs and expanding online sales channels.

The e-commerce market in India will likely continue to grow, driven by consumer preferences, improving payment infrastructure, and the rise of alternative payment solutions, Sharma noted.