India’s E-Commerce Market To Be Worth $260 Billion By 2025

According to a report, India’s e-commerce market would be worth around $260 billion by 2025. The current e-commerce market is around Rs 50,000 according to the figures during the last year in 2011.


The report is published by First Data Corporation and ICICI Merchant Services, and is titled, “E-commerce: A boon for the current economic downturn”. According to the report, the Indian customer is now more comfortable in making an online purchase up to an amount of Rs 25,000. Previously the Indian customers used to fear making an online payment. If however, the payment was even made, it was upto a range in between Rs 2,000 to Rs 5,000. This trend is now changing.

The report says that, “With different levels of adoption, the e-commerce market has the potential to grow anywhere between $70 billion and $150 billion under one scenario, and at a more robust growth scenario it can grow between $125 billion and $260 billion by 2024-25”.

The report says that, the percentage of e-commerce sales that happens through small towns in India is around 57%. This is a big figure and certainly cannot be ignored.

In the global trends, US, Brazil, China and Europe are showing huge growth figures in terms of e-commerce sales. In case of China, it is estimated that the country would add the population equivalent to the population of Canada each year for the next four years as e-shoppers.

In India, currently there are under 10 million internet users who actually engage themselves in buying stuff online. But there are around 150 million users who are “ready” to make purchases online. These 150 million users constitute around 75 million households in India.

The amount of online sales that happen through eight metros in India is around 43 percent while the rest of India contribute the rest figure.

According to IAMAI, which is the sectoral umbrella body, the e-commerce market in India currently stands at a figure of around $10 billion. The US e-commerce market is all set to touch $200 billion in 2013. The growth figure for US is currently recorded at 17 percent.

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