Strong growth in digital segments including e-retail is likely to help digital commerce in India to reach ₹2.37 lakh crore by the end of this year, according to a recent report. The market grew at a CAGR of close to 34 per cent from December 2011 to December 2017. Digital commerce had already touched ₹2.04 lakh crore by the end of last year.
The Indian e-retail industry’s contribution to digital commerce amounted to ₹73,845 crore, as per a joint report by Internet and Mobile Association of India (IAMAI) and IMRB Kantar.
An estimated 295 million Indian people were online as on December 2017, notes the report. The number of online users has increased significantly following the rapid drop in mobile internet prices, leading to an increase in online activity and engagement.
The report adds that the Indian shopping ecosystem has been a witnessing a massive disruption. The growth of internet has led to the creation of multiple online avenues with digital shopping being one of them. It says that the activity and engagement levels in e-retail in India has seen a significant increase.
While digital shopping is catching up, traditional method of shopping still continues to be strong in India, said media reports quoting the report.