The number of people using the Internet in India is increasing these days. Many organizations and advertisers are promoting and selling their products through the Internet. The Internet and Mobile Association of India (IAMAI) report on online commerce of India stated the market size of different industries including online traveling, e-tailing, digital downloading, online financial services and other online classifieds. The overall market size of e-commerce in India as of 2009 was Rs. 19,688 crores.
The average growth rate of the online travel industry was nearly 60% annually in India. As of 2009, the market size of online travel industry was Rs.14,953 crores contributing 76% of the overall market size.
E-tailing or e-retailing includes purchase of various electronic and other appliances online. It contributed about 8% (Rs. 1,550 crores) of the total e-commerce market size in 2009.
Ringtone or wallpaper downloads, mobile recharges, paid music and videos and so on come under digital downloading services. The digital downloading is growing averagely 47% annually in India. Its market size was found to be Rs.435 crores in 2009 contributing about 2% of the total e-commerce market size.
Online financial services
Online financial services including insurance services, fund-based transactions and so on are also in practice in India. The average growth of these online financial services was found to be about 30% annually. Its market size and contribution in 2009 were Rs.1,540 crores and 8% respectively.
Apart from these, other online services including online classifieds contribute for 6% of the total e-commerce market size with a size of Rs.1,210 crores in 2009. It was further estimated that there would be a growth of e-commerce market size by the end of 2011 in India.