India’s E-Commerce Market To Overtake US By 2034: Study
By the year 2034, India’s e-commerce market will be overtaking that of its US counterpart to become the second largest in the world. In less than two decades, it will also go head-to-head with the Chinese e-commerce market, which by then, will be the world’s largest. In the report by Worldpay, there are 350 million Indians who are online currently, and by 2020, this number will be 600 million by 2020. In other words, over the next 20 years, as India transacts more and more online, the ecommerce market is poised for an explosion in size. [Read the full report here]
Ron Khalifa, the Vice-Chairman of Worldpay summed up saying, “Our research has uncovered a number of trends that point to India’s potential for astounding e-commerce growth in the next two decades. The market is predicted to reach $63.7 billion by 2020 and overtake the US by 2034.”
The Worldpay report points to the fact that, though the growth of the ecommerce market would be a worldwide phenomenon, but emerging markets like India would be the focus. India alone will be growing at the rate of 28% from 2016 to 2020, which is bolstered by internet adoption, a corresponding uptake of mobile devices by the large millennial users of the system. According to Google’s new team called ‘Next Billion Users’, there are 3 Indians who are coming online every second.
A primary development of the National Optical Network (NON) was laid out to be completed in 2013. However, now that there is sight of the project being completed, a major boost will reach Indian internet users, and most probably, be able to connect the 2 lakh+ Gram Panchayats, at the total cost of Rs 20,000-crore. Though there were issues in implementation and execution of the project, the trials have already begun, and will be able to connect a large number of Indians, including those based in semi-rural areas to the internet.
The other interesting aspect, is the economics involved. As mobile handsets with internet connectivity get cheaper, and more menials come on board with data plans which are 3 times cheaper than the ones in the US, there is bound to be much more of mobile shopping. With 3G and 4G connections being increasingly common, including the efforts of Reliance Jio and the other telecom players, there is bound to be more use of mobile devices for transactions online, and result in greater online spends.
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