India’s internet economy is projected to hit $1 trillion by 2030, with e-commerce anticipated to be a major contributor, valued at $325 billion and ranking third globally. This growth trajectory was a focal point at a recent virtual roundtable hosted by InGovern Research Services, a corporate governance advisory firm. The event highlighted significant trends and developments within India’s e-commerce sector in 2023, emphasizing the crucial role of customer trust in sustaining its expansion.
Siju Narayan, Chief Experience Officer at RexEmptor Consult LLP, emphasized the interconnected nature of quick commerce with the broader retail industry. He praised the government’s efforts in creating a robust digital and financial infrastructure, which has been pivotal in priming the country for digital commerce. Additionally, consumer protection has remained a top priority for the government.
Retail consultant and educator Madhumita Mohanty attributed the surge in e-commerce growth to several factors: widespread mobile phone and internet access, rising aspirations, higher disposable incomes, urbanization, and the adoption of the Unified Payments Interface (UPI). Mohanty highlighted the significant demand from Tier-II and Tier-III cities, where e-commerce bridges the gap for consumers who previously had limited access to diverse brands and products.
Shriram Subramanian, Founder and Managing Director of InGovern Research Services, projected that as India’s economy grows to $5 trillion, e-commerce will continue to expand at an annual rate of about 25%, growing from $60 billion in FY23. He noted that e-commerce companies are benefiting from substantial positive market forces, responsibly enabling small and medium enterprises (SMEs) to sell both domestically and internationally through global selling programs. These companies are also investing heavily in tools and processes to build and maintain customer trust.
The roundtable also discussed the disruptive impact of quick commerce, a model promising faster deliveries, on the e-commerce landscape. Mohanty noted that as the sector evolves, e-commerce players must adapt to the changing needs of consumers across various cities and towns in India.
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