Report flags 19 per cent annual growth driven by urbanisation and digital expansion
India’s ecommerce market is poised for rapid growth, projected to rise from USD 145 billion in FY2025 to USD 345 billion by FY2030, at a compound annual growth rate (CAGR) of 19 per cent, according to a new report by Rubix.
The report highlights that India has quickly become the world’s third-largest retail market as of 2024, with ecommerce still accounting for only 7 to 9 per cent of total retail sales, signalling significant room for expansion. In FY2025, the sector recorded a Gross Merchandise Value (GMV) of USD 14 billion, reflecting 12 per cent year-on-year growth.
Among online categories, beauty products are emerging as the fastest-growing segment, driven by influencer marketing, personalised offerings, and rising digital engagement. Meanwhile, tier 3 and smaller cities have become key growth engines, contributing 60 per cent of new online shoppers and 45 per cent of total orders since 2020.
Rising incomes and lifestyle changes are also playing a role. Per capita net income has increased by 57.5 per cent over the past decade, while women’s participation in the workforce has jumped from 23 per cent in 2018 to 42 per cent in 2024, creating more dual-income households and higher demand for premium products.
Government policies, including the National Logistics Policy and Digital India initiatives, are helping improve supply chains and digital access, facilitating deeper ecommerce penetration.
Looking ahead, India may further attract global ecommerce players. The government is considering easing foreign investment rules to allow platforms like Amazon to directly procure goods from Indian sellers for export. Under the proposed third-party export facilitation model, dedicated export entities linked to ecommerce platforms would handle regulatory compliance, a move expected to position India as a global e-commerce export hub.
