According to the industry body Assocham, the Indian eCommerce market is set to be worth a staggering $38 billion this year. This is up from last year’s $23 billion. Therefore, there is clearly a lot of potential in this market given it has a year-on-year growth rate of 67%. Furthermore, #DigitalErra estimates that, in 2020, the Indian market will be a whooping $120 billion. Thus, while growth rates in other global markets are expected to plateau out, the Indian market offers a vast opportunity for businesses to grow their online revenues in a new and dynamic market.

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India Set To be World’s Second Largest eCommerce Market
According to the industry body Assocham, the Indian eCommerce market is set to be worth a staggering
$38 billion this year. This is up from last year’s $23 billion. Therefore,there is clearly a lot of potential in
this market given it has a year-on-year growth rate of 67%. Furthermore, #DigitalErra estimates that, in
2020, the Indian market will be a whooping $120 billion. Thus, while growth rates in other global
markets are expected to plateau out, the Indian market offers a vast opportunity for businesses to grow
their online revenues in a new and dynamic market.
What’s driving this growth?
 There is a tremendous rise in internet penetration which will see around 730 million Indians
online by 2020 and many of whom will be mobile-first consumers. Adding fuel to the economic
growth is India’s burgeoning smart-phone market coupled with one of the cheapest data plans of
the world.
 Wages rose 10% in 2016 and with that has come greater spending power amongst Indians which
will continue to rise over the next decade.
 With almost 70% of the population under 35 years of age, India has the largest youth population
in the world.

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Noticeable Factors in India’s eCommerce
India’s eCommerce has such potential because it can bring these three profounding changes.
i) Financial Development
Just as in China, Alipay of Alibaba has more than 400m accounts that let consumers buy products, pay
bills and transfer money and something similar is under way in India. Paytm, which provides digital
wallets and is itself backed by Ant Financial, has 120m accounts, nearly six times the number of credit
cards in India.
ECommerce companies are also assisting small businesses obtain loans that they would otherwise have
struggled to raise. Amazon India rolled out such a programme for its sellers last month. In January,
Snapdeal announced a partnership to streamline easy-repayment loans from the State Bank of India.
Besides, ShopClues launched Wydr – an app-only wholesale shopping platform, which connects
manufacturers,suppliers and retailers. It allows brands or wholesalers to sell directly to shopkeepers,
across India from across the country. The demonetization move has given the chance for a rapid adoption
of alternate payment options in India.
ii) Logistics Infrastructure
Where roads are clogged and infrastructure is creaky,the rival firms are busy building and acquiring
warehouses and local outposts into peculiar distribution networks. This can be ascertained from the fact
that almost most of their customers lie outside metros in to tier 2 and tier 3 cities. Besides, etailers are also
helping local merchants sell on global markets. Amazon claims to have 6,000 Indian merchants sell
abroad.
iii) Retail
Shopping malls and chain stores account for just about one-tenth total retail sales. Already, the combined
sales of top three eCommerce companies alone surpass those of the ten largest offline retailers. Also,
India’s tech scene is thriving and providing the needed impetus for technology incorporations

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Steps To Safeguard Growth
 India will need to cope with a new high level of demand of infrastructure. For instance, to
contemplate on the foreign funding scenario, market would require space,infrastructure and right
norms in place.
 Training new staff on ever-changing process is a big challenge for any company in a developing
economy. The fact that growth slowed between May 2015 and May of this yea r may be an
indication of this.
 There can be chance of rising inflation where supply cannot match the growing demand. This can
lead to rise in income equality.
Conclusion
The growth of India’s eCommerce market is a reality, bringing new businesses and new sources of
income to the country. However,measures should be taken to continue the positive effects of
industrialization.