E-Commerce Market Size and its Growth in India

By | April 25, 2011

Though Internet penetration rate In India is very low compared to other developed countries, Internet has been in use for enabling various businesses including online traveling, e-tailing, financial services, digital downloads other online services. Different modes of communication like emailing, social networking and so on are also in practice in India. E-commerce is growing and commercial websites which provide goods and services are increasing in India.

E-commerce growth in India
Indian e-commerce has evolved over the past decade in terms of magnitude. E-commerce in India is growing rapidly thereby increasing its importance in various segments. Most of the organizations (both small and big) found the importance of the Internet in their businesses. In addition, there has also been an increase in use of the Internet by general public. They are using the Internet for various reasons like emailing, entertainment (downloading music/videos/wallpapers etc.), general information search, online buying or shopping and so on.

E- commerce market size from 2007 to 2010
According to the Internet and Mobile Association of India (IAMAI) March 2011 report on online commerce, the total e-commerce market size in India in 2007 was Rs.8,146 crores. It had increased to Rs.14,030 crores in 2008 contributing a growth of about 72%. In 2009, e-commerce market size again increased to Rs.19,688 crores with 40% growth. It was estimated that in 2010 its size would increase to Rs.31,598 crores with a growth of 60%. Further, to reach Rs. 46,520 corers in the year 2011 with an expected growth of 47%.

Apparently, most of the online users in India are willing to make purchases through the Internet. Overall e-commerce industry is therefore poised to experience a high growth in the next couple of years. In India as of 2009, e-commerce largely is dominated by the online travel industry with 76% market share followed by the electronic retail with 7.82% market share.