Ecommerce Market To Reach $33 Bn, IT-BPM at $140 Bn This Fiscal: Study

by CXOtoday News Desk    Jan 30, 2018

ecommerce

The Indian e-commerce market is expected to touch USD 33 billion this fiscal registering a 19 percent growth over 2016-17 states the Economic Survey.

India’s IT and business process management (IT-BPM) industry has reached $140 billion with 8 percent growth over 2016-17, it said.

The IT-BPM industry employed around 3.9 million people during the period under review with a minimum of 16,000 firms in the country. This was an addition of around 173,000 persons over 2015-16 period.

“The industry ( IT-BPM ) comprises 16,000 plus firms that offer the complete range of services with over 4,750 start-ups. The share of ICT in total services exports for India declined marginally during the decade (2006-2016), while the ICT share in total services exports has increased in economies like China, Brazil, Russia, Philippines, Israel and Ukraine indicating increasing competition for India from these countries,” the survey noted.

The government is trying to boost the sector with initiatives such as Startup India, highlights the study.

“To further promote this sector, many initiatives have been taken, which include the establishment of BPO Promotion and Common Services Centres to help create digital inclusion and equitable growth and provide employment to 1.45 lakh persons, mostly in the small towns; setting up a separate Northeast BPO promotion Scheme with 5000 seats and having employment potential of 15000 persons; preparing the draft Open Data Protection Policy law; besides long-term initiatives like Digital India, Make in India, Smart Cities, e-Governance, push for digital talent through Skill India, drive towards a cashless economy and efforts to kindle innovation through Start-up India,” the survey said. 

An independent study done in 2016 by Delhi-based research firm Xeler8 said that over 40 percent of the startups that had started operations in the last two years had shut operations across sectors such as e-commerce, health technology and robotics, among others.

However, a Assocham-Deloitte study last month highlighted that he digital commerce market in India is likely to exceed USD 50 billion by the end of 2018 from the current USD 38.5 billion, on account of a growing internet population and increased online shoppers.