India’s e-commerce industry is on track to more than double in size by 2030, according to a recent report that underscores the sector’s strong growth trajectory and vast untapped potential.
The report notes that as of 2024, India has emerged as the world’s third-largest retail market, though e-commerce currently represents only 7–9 per cent of total retail sales — leaving substantial room for expansion. In FY2025, the sector achieved a Gross Merchandise Value (GMV) of USD 14 billion, marking a 12 per cent year-on-year rise.
Among online categories, beauty products have surfaced as the fastest-growing segment, fuelled by influencer-driven marketing, personalised offerings, and increased digital engagement. Significantly, tier-3 and smaller cities are driving the next wave of growth, contributing 60 per cent of new online shoppers and 45 per cent of total orders since 2020.
Also Read: India’s E-commerce Market Poised to More Than Double by 2030: Report
Rising disposable incomes and evolving lifestyles are further bolstering demand. Over the past decade, India’s per capita net income has risen by 57.5 per cent, while women’s workforce participation has grown from 23 per cent in 2018 to 42 per cent in 2024, resulting in more dual-income households and greater appetite for premium products.
Government initiatives, including the National Logistics Policy and the Digital India programme, are strengthening supply chain efficiency and improving digital access, thereby accelerating e-commerce adoption across the country.
Looking ahead, India could emerge as a global e-commerce export hub. The government is exploring policy measures to relax foreign investment norms, potentially allowing global platforms such as Amazon to directly procure goods from Indian sellers for export. The proposed third-party export facilitation model — where dedicated export entities handle regulatory compliance — aims to further integrate Indian businesses into the global digital trade ecosystem.
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