Insights into the growth of Indian e-commerce covering payment methods, target audiences, marketing, social media, economy and logistics

Economy

India is home to 1.32 billion people with a total GDP of US$8.6 trillion and is ranked as the 3rd richest country, according to the World Bank GDP per capita rankings. India’s GDP per capita is currently US$2,142 and expected to reach US$3,554 by 2025.

Digital User Insights

There are currently 548 million e-commerce users in India, with an additional 400 million users expected to be shopping online by 2025. Four years from now, these 948 million e-commerce users will spend an average of US$83.78 online.

India e-commerce

18.4% of 18-25 year olds in India use the internet for less than 30 minutes a day, compared to 22% who spend up to an hour, 32% who spend 1 to 2 hours, 17% who spend 2 to 4 hours, and 5.8% who spend 4+ hours online.

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Product Categories

Total Indian eCommerce revenue across all product categories is US$46 billion, and is expected to grow to US$79 billionby 2025. Electronics & Media is currently the leading product category in India, accounting for US$14 billion market share, followed by Fashionwhich generates US$13 billion in sales.

By 2025, Electronics & Media will still be the most purchased online category, with an estimated value of US$25 billion, and second favorite, Fashion, will have an expected worth of US$23 billion.

Indian E-commerce

Logistics

In 2018, India was ranked 44th in the World Bank Logistics ranking.

Preferred Online Payments

Cards are a popular form of payment method in India although e-wallets are becoming more popular and are predicted to increase from 26% to 33% share by 2025, due in part to a governmental push toward a digital economy.

India e-commerce

Where does India buy from?

India imports mostly from China ($75.5 billion), United States ($31.6 billion), Saudi Arabia ($26.3 billion), United Arab Emirates($23.8 billion), and Iraq ($20.8 billion).

India E-commerce

Internet and Device Usage

Internet penetration in India is currently 52%, and should reach 74% by 2025. Smartphone penetration is also at 52%, but is projected to grow to 73.9% in the next four years.

46% of online shoppers in India buy via desktop, with smartphone (39%) and tablet (9%) not far behind.

Marketing

In 2020, total ad spend in India was US$12 billion, with digital advertising accounting for aprroximatlely US$2.3 billion and expected to reach US$3.8 billlion by 2025.

India e-commerce

Social Media

There are 631 million social network users in India currently, predicted to reach over 1 billion by 2025. Facebook, LinkedIn, Twitter and Zedge.net are the leading social networks.

India e-commerce

For more market insights, check out the eShopWorld series of blogs covering a range of emerging eCommerce markets. For a more in-depth look at the India E-commerce market and the opportunities available to cross-border e-commerce brands, download Insight into India here: 

Insight into India