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Propelling India towards Global Leadership in e-commerce

India is rapidly marching towards becoming a digitally empowered society. The push fore-governance, the proliferation of smartphones, increasing Internet access and booming digital payments are fuelling the country’s journey towards a trillion-dollar digital economy by 2025. The widespread acceptance of Digital is being seen as a catalyst for overall economic growth, and with the combination of favourable demographics and policy reforms, Indiapresents a unique and powerful growth story.

This report highlights the growing potential of e-commerce in India and its increasing contribution to future economic growth. NASSCOM in partnership with PwC tries to bring to the fore key regulatory and infrastructure-related challenges faced by e-commerce players and also put forward recommendations to the government and other stakeholders to overcome these complexities in doing business and to provide an impetus to the industry.

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Key Findings

How does Indian e-commerce fare today

  • With a growing young Indian middle-class that is expected to create 150 Mn+ digital explorers, Indian e-commerce sector will surpass USD 100 Bn by 2022
  • Online Financial services set to grow the fastest
The next 100 Mn e-commerce users

  • Growth is expected from the next 100 million users with starkly different demographical backgrounds and preferences vis-à-vis existing users
  • With underlying demand drivers in place, Indian e-commerce maturity can match that of China / Russia in 5-6 years
Innovation and a Harmonized framework key to future growth

  • Indian e-commerce sector is governed by a myriad of laws and regulations and there is a need for 'a harmonized e-commerce policy framework'
  • To cater to the next set of users, e-commerce players need to innovate across the value chain through initiatives such as custom assortments, targeted marketing, local language content and online-over-offline (OOO) infrastructure
Possible to have a USD 150 Bn e-commerce market by 2022

  • With adequate growth drivers in place and favorable policies, it's possible to grow the sector at CAGR 33% and be a USD 150 Bn industry by 2022
  • The sector could also create 1 Mn jobs and 20Mn+ SMEs generating revenues by 2022
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