India’s e-commerce market set to almost double to $300 billion by 2030: Report

Mumbai- India’s e-commerce industry, currently valued at around $120–140 billion, is expected to surge to $280–300 billion by 2030, even as online sales continue to account for just 7–8 per cent of total consumer spending, according to a new report released on Tuesday.

The study by Boston Consulting Group noted that despite the rapid rise of online shopping, offline retail in India has remained strong, growing at an annual rate of 13–14 per cent over the last four years.

The report highlighted that the Indian retail landscape is moving into a phase where online and offline channels coexist, with omnichannel shopping becoming the norm. Around five out of every ten offline shoppers now use online platforms to research products before making purchases.

India currently has close to 300 million online shoppers, a number expected to increase to about 440 million by 2030. Notably, nearly 30 per cent of these online consumers are from rural areas, underlining the widening digital reach.

E-commerce in India comprises e-retail and e-services, estimated at $75–85 billion and $45–55 billion respectively. Future growth is expected to be driven largely by e-services, which are projected to grow at a compound annual growth rate (CAGR) of 20–22 per cent, compared to 16–18 per cent for e-retail.

“Today’s shoppers move fluidly between digital screens and physical stores — researching online, buying offline, or the other way around — depending on convenience, trust and specific needs,” the report said, based on a survey of more than 12,000 consumers across regions.

The study also found that nearly two-thirds of women shoppers feel safer shopping online, citing greater privacy, ease of access and the ability to shop independently at any time.

“India’s consumer base is becoming increasingly diverse, with shoppers choosing different formats based on their preferences and level of digital maturity,” said Kanika Sanghi, Partner and Director at BCG. “As online shopping becomes more inclusive, platforms and brands must focus on creating simpler, safer and more seamless experiences across all touchpoints.”

The report further pointed out that quick commerce has grown at over 100 per cent CAGR, turning instant and top-up purchases into a mainstream habit and increasing buying frequency. Social and chat-based commerce has also expanded rapidly, registering a growth rate of 40–45 per cent.

In another sign of the sector’s momentum, the time taken by online brands to reach an annual revenue of Rs 100 crore has reduced significantly — from about 11 years earlier to nearly seven years now, the report added.

With inputs from IANS