Indian E-commerce Industry Analysis

India’s e-commerce industry, valued at Rs. 10,82,875 crore (US$ 125 billion) in 2024, is projected to grow to Rs. 29,88,735 crore (US$ 345 billion) by 2030, reflecting a compound annual growth rate (CAGR) of 15%. The market is expected to surpass Rs. 13,69,120 crore (US$ 160 billion) in FY25, recording annual growth of 25-30%.

As of August 2025, Government e-Marketplace (GeM) has crossed Rs. 15,00,000 crore (US$ 171.3 billion) in cumulative GMV since 2016, reinforcing its role in driving transparent and inclusive digital public procurement.

In August 2025, the Unified Payments Interface (UPI) facilitated 20 billion transactions, processing over Rs. 24,85,000 lakh crore (US$ 288.65 billion) in value. This marked 34% growth in volume and 21% growth in value year-on-year, with PhonePe, Google Pay, and Paytm together accounting for 85% of India’s digital payments.

On September 4, Amazon India acquired Axio, securing Rs. 2,200 crore (US$ 255.55 million) in loans to enable direct credit for consumers and MSMEs.

As of August 2025, Flipkart added nearly 400 micro-fulfilment centres and dark stores across 19 cities, while Amazon added 12 new large fulfilment centres and 6 new sort centres to improve reach and delivery speed.

In April 2025, Eternals capped Foreign Institutional Investor (FII) ownership at 49.5% to support its shift toward an inventory-led quick commerce model via Blinkit. This change is expected to enable faster deliveries, stronger quality control, pricing flexibility, and growth in private labels.

Flipkart’s New Seller Success Program, launched in January 2025, offers 60 days of free onboarding and advanced tools. The initiative helped Tier II and III city sellers achieve 2.3 times faster success and 2 times year-on-year growth.

India’s e-commerce sector emerged as a key driver of start-up investments in 2024–25, attracting Rs. 26,527 crore (US$ 3.1 billion) across 79 deals, or 31% of total start-up funding. This represented a sharp 128% jump from 2023. Zepto (Kirana Kart Technologies) alone raised Rs. 11,980 crore (US$ 1.4 billion), accounting for 44% of all e-commerce-related PE/VC investments.

In FY25, the Government e-Marketplace (GeM) crossed a GMV of Rs. 5 lakh crore (US$ 58.5 billion), reaching the milestone 18 days before year-end. Services contributed 62% of this growth at Rs. 2.54 lakh crore (US$ 29.7 billion), while products accounted for 38% at Rs. 1.55 lakh crore (US$ 18.1 billion).

The volume of digital payment transactions reached 222.19 billion in FY25, up from 164.43 billion in FY24. India had around 969.1 million internet subscribers by March 2025.

India’s quick commerce market saw rapid growth, with Indians spending Rs. 64,000 crore (US$ 7.47 billion) on such platforms in FY25, more than double FY24. Gross order value is expected to reach Rs. 2,00,000 crore (US$ 23.34 billion) by FY28, with players focusing on profitability through fees, ads, subscriptions, and innovation. HUL, Britannia, Dabur, Tata Consumer Products, AWL Agri-Business, and Marico together posted over Rs. 4,400 crore (US$ 515 million) in quick commerce sales in FY25.

E-commerce giants Flipkart and Myntra posted 27% growth in advertising revenues in FY25, reaching Rs. 7,232 crore (US$ 836.36 million). Advertising has become a key driver of profitability for Indian e-commerce platforms.

India’s beauty and personal care (BPC) market is expected to reach Rs. 2,60,610 crore (US$ 30 billion) by CY27, representing 5% of the global industry. The segment is growing at 10% annually, making it the fastest growing among major economies.

India’s direct-to-consumer (D2C) market is projected to cross Rs. 8,70,500 crore (US$ 100 billion) in 2025. Quick commerce is expanding at 70–80% CAGR, with overall e-commerce annual growth projected at 17–22% in 2025.

As of March 2024, India had 954.4 million internet subscribers. By 2024, the country had also surpassed the United States to become the second-largest e-retail market with 270 million online shoppers.

Trend-led fashion is projected to grow nearly four times by 2028, reaching Rs. 68,456–85,570 crore (US$ 8–10 billion), with over half of sales expected online.

According to Counterpoint Research, India became the world’s second-largest smartphone market by unit volume and the third-largest by value in the third quarter of CY24, accounting for 15.5% of global shipments. IDC data shows India shipped 151 million units in 2024, growing 4% year-on-year.

India’s subscription e-commerce market was valued at Rs. 88,479 crore (US$ 10.34 billion) in 2024 and is expected to grow to Rs. 3.2 lakh crore (US$ 374.24 billion) by 2033, at a CAGR of 45.13%.

Social commerce began reshaping retail in 2023, with projections suggesting growth of 31% CAGR to US$ 37 billion by 2025. India’s live commerce market is expected to reach US$ 4–5 billion by 2025, led by BPC demand.

By 2023, the number of internet connections had risen to 895 million, driven by the Digital India programme, with 55% in urban areas and 97% of them wireless.

Online penetration of retail is projected to reach 14% by 2028, compared to 8% in 2024. The number of online shoppers is expected to rise from 260 million in 2024 to 300 million by 2030 and 700 million by 2035, with much of this growth from Tier II cities.

The Government of India has allowed 100% FDI in B2B e-commerce and 100% FDI under the marketplace model of B2C e-commerce. Alongside, ONDC is being developed to create an inclusive e-commerce infrastructure.

Through Digital India, BharatNet, GST, and the National Logistics Policy, the government has supported digital and logistics infrastructure to accelerate the sector. Its vision is to build a trillion-dollar digital economy by 2025.

India’s e-commerce sector is set for robust expansion, supported by strong digital infrastructure, rising internet penetration, and increasing consumer adoption across Tier II and III cities. With policy support, innovation in quick commerce, and growing participation from global and domestic players, the industry is well-positioned to drive inclusive growth and contribute significantly to India’s vision of a trillion-dollar digital economy.