India E-commerce Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The India E-commerce market is segmented by B2C E-commerce (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverage, Furniture and Home), and B2B E-commerce.

India E-commerce Market Size

India Ecommerce Market Summary
Study Period: 2018 - 2028
CAGR: 21.5 %

Major Players

India Ecommerce Market Major Players

*Disclaimer: Major Players sorted in no particular order


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India E-commerce Market Analysis

The India E-Commerce Market is anticipated to grow with a CAGR of 21.5 % during the forecast period (2022- 2027). One of the primary factors driving the market's growth is rapid urbanization. Additionally, rising internet penetration and devices such as smartphones, laptops, and tablets to access e-commerce websites boost the market growth. E-commerce allows businesses to conduct business without maintaining a physical presence, saving money on infrastructure, communication, and overhead.

  • The policies introduced by the Government of India, which includes the likes of 00 % FDI in B2B E-commerce and 100 % FDI through the automatic route in the marketplace model of B2C E-commerce, is projected to boost the sector's growth. As per the new FDI policy, online entities, through foreign investment, cannot offer the products sold by retailers in which they hold an equity stake.
  • According to India Brand Equity Foundation (IBEF), the Indian government's Digital India effort aims to drive it into an online economy worth trillions by 2025. It has led to the formation of a new steering group to review and analyze the development of an e-commerce platform for the government.
  • The Commerce Ministry has started a new committee to review the Open Network for Digital Commerce (ONDC) strategy. ONDC is an e-commerce platform that the government is supporting and aims to provide the final shop's infrastructure, which will resemble Flipkart and Amazon. Such developments are expected to drive the studied market.
  • Furthermore, according to IBEF, by 2024, online retail penetration will reach 10.7%, up from 4.7% in 2019. Likewise, by 2025, India's internet buyers will number 220 million. According to a Payoneer report, India's e-commerce sector is ranked 9th in the world for cross-border growth. E-commerce in India is expected to grow from 4% of total food and groceries, fashion, and consumer electronics retail sales in 2020 to 8% by 2025.
  • Expansion of E-commerce can raise competition in retail markets, increase consumer choice, and motivate and expedite product distribution innovation. However, several competition agencies' recent enforcement and advocacy work have revealed the possibility of anticompetitive behavior in the internet context. Concerns about potential market fragmentation are thus a significant concern among many organizations that have looked into the topic of e-commerce competition.
  • The pandemic-induced lockdown and mobility restrictions represented a significant point for e-commerce in India, driving demand to new highs, bringing new shoppers and sellers into digital platforms, and offering players long-term growth. Containment efforts introduced people to the convenience of online buying and motivated seasoned online buyers to buy more, making the Indian e-commerce business one of the significant beneficiaries of the pandemic.

India E-commerce Industry Segmentation

E-commerce is the buying and selling of goods and services over the internet through online shopping. However, this term is often used to describe all the seller's efforts in selling products directly to consumers. It begins when potential customers learn about a product, buy it, use it, and ideally maintain lasting customer loyalty.

The study tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for market estimates and growth rates in India throughout the anticipated period. The study goes on to look at Covid-19's overall influence on the ecosystem. The report's scope includes market size and forecasting for B2B and B2C segments, with the B2C channel being further split by application.

By B2C E-commerce
Market size (GMV) for the Period of 2017-2027
Market Segmentation - by Application
Beauty & Personal Care
Consumer Electronics
Fashion & Apparel
Food & Beverage
Furniture & Home
Others (Toys, DIY, Media, etc.)
By B2B E-commerce
Market size for the Period of 2017-2027

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India E-commerce Market Trends

This section covers the major market trends shaping the India E-commerce Market according to our research experts:

Internet Plays a Significant Role in Market Growth

  • As per IBEF, a surge in internet and smartphone usage has fueled most of the industry's expansion. Because of the 'Digital India' campaign, the number of internet connections expanded dramatically to 830 million in 2021. In metropolitan areas, 55% of internet connections were made, 97% of them being wireless.
  • According to TRAI, in the middle of 2021, India had over one billion wireless mobile subscribers. The majority of traffic that year came from a 4G data payload. In 2020, the country's 4G penetration rate was estimated to be at 44%. With over 410 million subscriptions as of December 2020, Reliance Jio was the top service provider.
  • Due to a lack of confidence and security concerns with internet payments, cash payments have traditionally been the favored payment method in India. However, digital payments are predicted to account for 80% of all transactions in India by 2025 due to a large young population with access to smartphones. The Indian market has been adopting digital eWallets quicker than the US, the UK, and China, according to ASSOCHAM (The Associated Chambers of Commerce and Industry).
  • Presently, 5G is one of the most invested technologies by several end-user industries in the market. 5G connectivity is further opening up various use cases in increasing the efficiency of varied sectors. With the growing proliferation of technology in smartphones, consumers are increasingly expecting digital engagement and personalized experiences overall.
India Ecommerce Market : Internet subscribers in selected urban areas, Number in millions, by service area, India, June 2021,

Consumer Electronics is a strong contributor to the growth of the market

  • According to the Indian Brand Equity Foundation, in October and November 2021, e-commerce companies recorded significant-high sales of consumer electronics across platforms, owing to increased buying during the holiday season. Flipkart Group emerged as one of the prominent players with intensifying competition from Amazon throughout the festive season in the country.
  • Furthermore, India's refrigerator, washing machine, and air conditioner markets held a significant market share, with washing machines leading the category. According to the India Cellular & Electronics Association (ICEA), India's laptop and tablet manufacturing industry could be worth USD100 billion by 2025. Such a massive increase in the consumer electronics market may allow Indian e-commerce players to increase their online product line. It may open new online sites specific to the consumer electronic market.
  • In November 2021, Flipkart and the Ministry of Rural Development of the Government of India (MoRD) signed a Memorandum of Understanding (MoU) for their ambitious Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) program, which aims to empower local businesses and self-help groups (SHGs) by bringing them into the e-commerce fold.
  • By creating an electronic components manufacturing base in India and boosting exports, IT companies focus on entering the Indian consumer electronics market. Consumer electronics companies are focusing on the smart wearables sector in India. The administration intends to invest heavily in rural electricity and low-cost housing. Electronic goods attracted USD 3.19 billion in FDI between April 2000 and December 2021.
  • India is expected to exhibit remarkable growth in the soundbar segment. Factors such as increasing disposable income, and features, such as high-definition (HD), smart TVs with built-in Wi-Fi for connectivity to Netflix, Amazon Prime, and YouTube, among other online streaming channels, play a significant role in increasing consumer spending on these devices. Such trends may drive the studied market.
India Ecommerce Market : Production Value of Consumer Electronics, In INR Billion, India, FY 2014 - FY 2021

India E-commerce Industry Overview

In India, the competition in the E-commerce market has increased as the customer's adoption of online sales channels has grown. This growth is aided by an increase in internet penetration. Further, brands such as Amazon, Flipkart, and many more expand their reach by providing customer-centric services that enhance customers' online shopping experience.

  • January 2022 - Flipkart, India's native e-commerce platform, stated that it had expanded its grocery operations to serve customers in Tier 2 and Tier 3+ cities such as Ajmer, Amritsar, Bhuj, and Bokaro Daman & Diu, Dehradun, Kanyakumari, and others. Flipkart Grocery is now accessible in 23 states throughout the country, with 1,800 cities and 10,000 PINs. Consumers in these cities will now shop for groceries from a range of more than 6,000 items.
  • September 2021- CARS24, India's top used automobile e-commerce site, has raised USD 450 million in capital from several financial institutions, including a USD 340 million Series F equity round and USD 110 million in debt. Amazon introduced Prime Video Channels in India in September 2021. Prime Video Channels will provide Prime members with a consistent experience and access to a wide range of popular video streaming providers.

India E-commerce Market Leaders

  1., Inc.

  2. Flipkart Private Limited

  3. eBay, Inc.

  4. Alibaba Group Holding Limited

  5. FSN E-Commerce Ventures Limited (Nykaa)

*Disclaimer: Major Players sorted in no particular order

India Ecommerce Market Concentration

India E-commerce Market News

  • February 2022: Amazon India has announced a partnership with Invest India and the Indian Industries Association (IIA) to launch the India ODOP Bazaar on the Amazon India platform. Hundreds of ODOP and Geographical Indication (GI) products from local businesses across India will be on display at the India ODOP Bazaar. Handlooms and handicrafts made by local Indian artisans, as well as locally produced agricultural products from across India, will be highlighted in the storefront.
  • September 2021: Bikayi, one of the fastest-growing mobile-commerce enablers, has secured a Series-A investment round headed by Sequoia Capital India for USD 10.8 million. The startup has previously raised USD 2 million in a seed round of funding led by Y Combinator in August 2020.

India E-commerce Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key Market Trends and Share of E-commerce of Total Retail Sector

    4. 4.4 Impact of COVID-19 on the E-commerce Sales


    1. 5.1 Market Drivers

      1. 5.1.1 Increased Internet Penetration Across the Country

      2. 5.1.2 Supportive government policies and regulatory framework

    2. 5.2 Market Challenges

      1. 5.2.1 High rate of return of merchandise, especially in B2C segment

    3. 5.3 Analysis of Key Demographic Trends and Patterns Related to E-commerce Industry in India (Coverage to include Population, Internet Penetration, ecommerce Penetration, Age & Income etc.)

    4. 5.4 Analysis of the Key Modes of Transaction in the E-commerce Industry in India (coverage to include prevalent modes of payment such as cash, card, bank transfer, wallets, etc.)

    5. 5.5 Analysis of Cross-border E-commerce Industry in India (Current market value of cross-border & key trends)

    6. 5.6 Current Positioning of India in the E-commerce Industry in Asia Pacific

  6. 6. Market Segmentation

    1. 6.1 By B2C E-commerce

      1. 6.1.1 Market size (GMV) for the Period of 2017-2027

      2. 6.1.2 Market Segmentation - by Application

        1. Beauty & Personal Care

        2. Consumer Electronics

        3. Fashion & Apparel

        4. Food & Beverage

        5. Furniture & Home

        6. Others (Toys, DIY, Media, etc.)

    2. 6.2 By B2B E-commerce

      1. 6.2.1 Market size for the Period of 2017-2027

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1, Inc.

      2. 7.1.2 Flipkart Private Limited

      3. 7.1.3 eBay, Inc.

      4. 7.1.4 Alibaba Group Holding Limited

      5. 7.1.5 Nykaa

      6. 7.1.6 Snapdeal

      7. 7.1.7 Ajio

      8. 7.1.8 Grofers

      9. 7.1.9 Purplle

      10. 7.1.10 Apple, Inc.

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

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India E-commerce Market Research FAQs

The India E-commerce Market is studied from 2018 - 2028.

The India E-commerce Market is growing at a CAGR of 21.5% over the next 5 years., Inc., Flipkart Private Limited, eBay, Inc. , Alibaba Group Holding Limited, FSN E-Commerce Ventures Limited (Nykaa) are the major companies operating in India E-commerce Market.

India E-commerce Industry Report

Statistics for the 2023 India E-commerce market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India E-commerce analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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