Indian E-commerce Market Set to Hit $325 Billion by 2030, Report

Indian e-commerce market to reach $325 billion in 2030, says report. Rousting rural demand, the Indian e-commerce market is expected to touch $325 billion by 2030 with a robust 21 per cent compound annual growth rate, or CAGR, a report said on Monday. The retail sector, which is valued at $753 billion in FY23, is estimated to grow with a 9.1 per cent CAGR until FY27, the highest among the large economies, the FICCI-Deloitte report has said.

According to findings, retailer is rapidly embracing the omnichannel strategies with tech-enabled experiential selling and new private labels for catering to India's price-sensitive yet aspirational consumers.
According to the report, retail networks in tier 2 and 3 cities will also contribute a significant part of this growth.

The growth has been driven by increased penetration of smartphones, internet connectivity, and rising disposable incomes. Quick commerce, which has disrupted traditional supply chains by focusing on fast delivery of essentials, has also taken that a step ahead in reshaping patterns of consumption, the report mentioned while it was released at an event in the national capital.
The country is likely to be the third-largest consumer market by 2030, the report said.

Competition pressure from D2C brands, a growing need for premiumisation, and innovative new product development that aligns with the needs of young and middle-income consumers are all feeding into this trend.

"FMCG exports are on the upswing as well and contribute significantly to foreign direct investment," it added.

All this has been supported by a major surge in rural private consumption in the country, courtesy Pradhan Mantri Jan Dhan Yojana. Over 53 crore bank accounts have been opened, bringing into the formal financial system millions of Indians from rural India for the first time.

The government has been hailing the meteoric rise in credit-driven consumption in small cities and towns as a "revolutionary shift.".

The central bank said growth in household consumption was set to pick up pace as headline inflation eased "with a revival of rural demand already taking hold," it said.