A new report says that India’s e-commerce market could hit $150 billion by 2022 due to rising incomes and a boost in Internet users.
The report by software industry lobby group Nasscom and consulting firm PwC India — called “Propelling India Towards Global Leadership in eCommerce” — says that India’s eCommerce industry is expected to contribute 4 percent of GDP by 2022. It also predicts that during that five-year period, the size of India’s middle class will surge to 540 million from 380 million in 2017.
“A ‘Make-for-India’ solution approach along with conducive policy environment can potentially make eCommerce a $150 billion market by 2022 with a globally leading compounded annualized growth rate of 35 percent,” the report said, according to Live Mint.
In addition, the study predicts that the number of Internet users will nearly double to 850 million in five years from 450 in 2017. And the growing e-tail market could grow at a compounded rate of 30 percent each year to surpass $60 billion in market size by 2022.
“The next frontier for the battle in the Indian eCommerce industry is set to be fought around a seamless shopping experience, building digital trust, voice-based or conversational commerce and creating an inventory of localized content,” said Sandeep Ladda, partner and global technology, media and telecom sector leader at PwC India.
The report included e-travel, e-tail, financial services such as e-wallets and insurance, consumer services (classifieds and e-services) and digital content segments, but omitted business to commerce.
As the country’s eCommerce market grows, it’s no surprise that major retailers want in on the action. Last month, India’s anti-trust regulator approved Walmart’ $16 billion acquisition of online marketplace Flipkart, while Amazon has also been competing for eCommerce dominance in the country.
It was also reported last month that Reliance Retail and Alibaba are negotiating a partnership in the Indian retail segment to build “a mega Indian retail joint venture” with an investment of “at least $5 billion” to mount a challenge against Flipkart and Amazon India.