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 18.4%. The market is expected to surpass Rs. 13,69,120 crore (US$ 160 billion) in FY25, recording annual growth of 25-30%.
The Government e-Marketplace (GeM) has achieved a cumulative Gross Merchandise Value (GMV) of Rs. 18.4 lakh crore (US$ 208.2 billion), including crossing Rs. 5 lakh crore (US$ 56.6 billion) GMV in FY2025-26. The platform continues to evolve as a transparent, efficient, and inclusive digital public procurement system, contributing to strengthening India’s public economy.
In April 2026, India’s Unified Payments Interface (UPI) processed 22.35 billion transactions worth Rs, 29.03 lakh crore (approximately US$ 328.4 billion). The platform had 713 participating banks, highlighting the continued expansion and widespread adoption of digital payments across the country.
The International Monetary Fund, in its June 2025 report on growing retail digital payments, recognised UPI as the world’s largest retail fast payment system by transaction volume. The 2024 ACI Worldwide report titled Prime Time for Real Time noted that UPI accounts for around 49% of global real time payment transaction volume. Within India, 81% by volume of total retail payment transactions are processed on UPI rails, making it the preferred mode for person to person as well as person to merchant payments
In April 2026, Amazon India announced plans to expand Amazon Now to 100 cities, backed by its US$ 300 million (Rs. 2,800 crore) investment to strengthen quick-commerce infrastructure, including micro-fulfilment centres and last-mile delivery capabilities.
In April 2026, Amazon India expanded its Amazon Hub Delivery programme to over 25,000 local stores, enhancing last-mile delivery infrastructure while creating additional income opportunities for neighbourhood retailers.
Amazon announced in December 2025 plans to invest over US$ 35 billion in India by 2030, building on nearly US$ 40 billion already invested. The company will focus on AI-led digitisation, export growth, and job creation, having already digitised 12 million small businesses, enabled US$ 20 billion in exports, and supported 2.8 million jobs. By 2030, Amazon aims to reach US$ 80 billion in exports and support 3.8 million jobs while expanding AI access across businesses, education, and consumers.
India’s D2C segment is projected to reach US$ 60 billion by 2030, driven by strong MSME adoption (53% preference). At the same time, marketplaces (Amazon, Flipkart, Meesho, Myntra) are expected to scale to US$ 100 billion in sales by 2030, indicating a coexistence of channels rather than substitution.
India’s digital economy is expected to contribute nearly one-fifth of national income by 2029-30, surpassing both agriculture and manufacturing sectors. Digital-enabling industries are growing significantly faster, at 17.3%, compared to 11.8% growth for the overall economy.
In April 2026 Ekart expanded its partnership with IKEA India to provide EV-powered last-mile delivery services in Chennai, strengthening sustainable logistics and omnichannel fulfilment capabilities.
In February 2026, Flipkart is exploring entry into India’s online food delivery market with a Bengaluru pilot expected around May-June, followed by a broader rollout. The company is evaluating a standalone platform or integration via Open Network for Digital Commerce (ONDC), targeting a US$ 9 billion market dominated by Zomato and Swiggy, with strong growth projected through FY30.
In February 2026, ONDC partnered with India Post under the India Post Warehousing Model to provide warehousing, packaging and logistics support for MSMEs, artisans and FPOs.
In February 2026, Amazon inaugurated its second-largest corporate campus in Asia in Bengaluru, spanning 1.1 million sq. ft. and accommodating over 7,000 employees, strengthening its technology, e-commerce, and digital operations in India.
In December 2025, Delhivery launched ‘Delhivery International’ to simplify cross-border logistics for SMEs through cost-effective shipping, streamlined documentation, and end-to-end visibility, enabling wider participation in global e-commerce exports.
Blinkit plans to expand its dark store network to 3,000 by March 2027, nearly doubling its current footprint to strengthen its quick commerce capabilities. The expansion will focus largely on top urban markets, where demand for 10-minute delivery remains highest. With over 2,100 stores already operational, the move highlights Blinkit’s aggressive push to scale infrastructure amid rising competition from players like Swiggy, Zepto, Flipkart, and Amazon
In April 2026, Flipkart, in partnership with Axis Bank and PayU, introduced biometric authentication for card payments, enabling fingerprint and Face ID-based verification to enhance payment security and streamline digital transactions
On December 2025, Flipkart has agreed to acquire a majority stake in Minivet AI, a GenAI startup specializing in AI/ML solutions for e-commerce. The acquisition aims to enhance Flipkart’s capabilities in visual, conversational, and AI-led shopping, leveraging Minivet’s technology for scalable product video creation and full-stack AI solutions
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 (K irana Kart Technologies) alone raised Rs. 11,980 crore (US$ 1.4 billion), accounting for 44% of all e-commerce-related PE/VC investments.
Quick commerce platforms like Blinkit have significantly expanded their user base, with daily order user share doubling from 8% in March 2025 to 17% in November 2025, indicating stronger consumer engagement in fast delivery e-commerce services.
Two-tier cities and smaller towns now account for 60% of all online orders in India, showcasing the growing reach of e-commerce beyond major urban centers. Interestingly, nearly 50 percent of registered SMEs are located outside Tier-1 cities.
India's annual online transacting user base expanded to 320-340 million in FY26, with Tier II and Tier III cities emerging as the primary contributors to new user acquisition.
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).
Digital payment transactions grew by 35.04% in volume and 18.04% in value in FY2024-25. UPI accounted for 81% of the total digital payment volume during the year, reinforcing its status as the world's largest real-time retail payment system.
As of 2025, Quick commerce already accounts for nearly 10% of India’s e-Retail market, underscoring its strong foothold in the country’s digital commerce ecosystem. This share is expected to 20% of e-retail market by 2030 which is US$ 34 - 40 billion.
E-retail in India has significant headroom, accounting for roughly 1.6% of GDP in 2025 compared to 4%-4.5% in Indonesia and 13%-14% in China. This upside is largely driven by grocery, the largest component of retail which remains structurally underpenetrated online. Building on momentum from the second half of 2025, India’s e-retail market is expected to sustain a more than 20% CAGR and scale to US$ 170 - US$ 180 billion in GMV by 2030. By the end of the decade, more than one in ten retail dollars and one in four non-grocery retail dollars are expected to be spent online
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 e-commerce market is projected to grow 12.5% in 2025 to about US$ 211.6 billion, with expectations of reaching roughly US$ 326.7 billion by 2029, driven by strong online shopping demand and digital payments. The article highlighted the role of big festive sale events on platforms such as Flipkart, Myntra, and Amazon in sustaining this momentum.
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.
Credit card use for e-commerce rose by 19.6% in October 2025, reflecting the increase in online shopping activity during the festive season.
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.
India has emerged as the world's second-largest mobile manufacturing country, with mobile phone exports increasing 127 times from approximately Rs. 1,500 crore in FY2014-15 to around Rs. 2 lakh crore in FY2024-25. Smartphones also became India's largest export category in CY2025, with exports valued at US$ 30.13 billion.
India's smartphone shipments declined 4.1% YoY to 31.0 million units in Q1 2026. However, market value increased 5.8% YoY as ASPs reached a record US$302, reflecting a shift towards value-driven growth amid rising memory costs and higher device pricesIndia has emerged as a major smartphone export hub, recently overtaking China in shipments to the United States in Q2 2025. Mobile phone exports have grown significantly, rising from Rs.1,500 crore in FY2014-15 to Rs. 2,00,000 crores in FY2024-25. In 2024, Apple’s exports from India reached a record Rs. 1,10,989 crore (US$ 12.8 billion), reflecting 42% year-on-year growth.
Digital India has strengthened India's electronics manufacturing ecosystem through policy support, innovation, and investment. Electronics production has increased from Rs. 1.9 lakh crore in FY 2014-15 to about Rs. 12 lakh crore as of March 2026. Today, India is the world's second-largest mobile phone manufacturer, reflecting its growing role in global electronics value chains.
According to IDC, India’s smartphone shipments grew marginally by 0.5% YoY to 152 million units in 2025, with mid-year recovery offset by a 5% decline in Q4 due to inventory normalization and cautious consumer demand.
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%.
In October 2025, major e-commerce platforms including Flipkart, Amazon, and Myntra ramped up seasonal hiring ahead of festivities, collectively creating over 3.8 lakh seasonal job opportunities across supply chain, logistics, and customer service. Delivery personnel made up the largest share of festive hires.
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. India had nearly 290-300 million online shoppers in 2025, with Tier-2+ cities contributing around 65% of incremental shoppers. Shopper penetration remains only 25-30% of internet users in smaller cities, leaving significant room for future growth.
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.
