Invest India is an agency that helps with investment promotion and facilitation. According to a recent report from Invest India, India’s E-commerce market is all set for a huge boost by 2030. It has been predicted that by 2030, the E-commerce market will jump to $325 billion. And, more impressively, India’s overall digital economy is expected to hit a whopping $800 billion by that time!

With a valuation of $70 billion, the e-commerce sector in India accounts for a mere 7% of the nation's overall retail market. However, significant growth potential is soon anticipated. It seems that the stage is set for major expansion in the upcoming years due to factors like the availability of affordable internet services, rise in smartphone users in rural areas, and widespread internet connectivity.

With a jaw-dropping 881 million users, India holds the title for the world’s second-largest internet user base. The report predicts that by 2030, India will step up as the third-largest online retail market. This surge is driven by the rapid expansion of the nation’s digital economy.

Affordable Internet is the Key Player in Online Shopping

The report paints a bold picture of India spearheading the online shopping revolution, anticipating a staggering 500 million shoppers by 2030. Invest India sheds light on the country’s escalating internet penetration, projecting that by 2025, an impressive 87% of Indian households will be online. They particularly emphasize the significant role of affordable mobile internet in driving this trend.

The report pointed out that cheap internet prices, like $0.17 (Rs 13.5) for one gigabyte of data, are a big reason why lots of people in India use the internet. This makes online stuff more appealing. It also mentioned how much more people are using their phones for internet stuff, showing that digital platforms are becoming super important for all kinds of things.

It’s expected that by 2026, more than 1.18 billion people in India, which is over 80% of the population, will own smartphones. This rise in smartphone users, along with each person using more data on average, will give a big boost to the digital economy. The Unified Payments Interface (UPI) is also making a big impact in digital transactions, handling transactions worth $1.5 trillion in 2022.

Report Highlights Rising Number of Smartphone Users

The report also emphasized key e-commerce drivers, such as rising smartphone use, UPI dominance in transactions, and local language content availability. With 73% of Indian internet users in local languages, a user base of 540 million fuels a $53 billion market.

In a Nutshell

Invest India sees India’s e-commerce reaching $325B by 2030, backed by an $800B digital economy. Key factors include cheap internet, more smartphones, and UPI. Using local languages is important; 540M users could make a $53B market.

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