India’s E-commerce market is expected to grow to $325 billion by 2030: Invest India | Current Affairs | Vision IAS
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    India’s E-commerce market is expected to grow to $325 billion by 2030: Invest India

    Posted 02 May 2024

    2 min read

    • Invest India  also highlighted that India will become the 3rd largest online retail market by scale in 2030
      • Invest India is the National Investment Promotion and Facilitation Agency. It is set up as a non-profit venture under the Ministry of Commerce and Industry.
    • Current Status of E-commerce: In 2022, sector was worth $70 billion and makes about 7% of India’s total retail market.

     

    • Key E-commerce models:
      • Inventory Based: In it, Inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly.
        • FDI is not permitted.
      • Market Based: In it, an e-commerce entity provides an information technology platform to connect buyers and sellers. E.g.  Amazon
        • 100% FDI under automatic route is permitted.

     

    • Key Drivers of E-commerce:
      • Increase in internet penetration (52% as of 2022)
      • Promotion of Digital infrastructure (like eKYC, and Unified Payments Interface)
      • Rise of rural-led Value e-commerce (by 2026 over 60% of e-commerce demand is predicted to come from tier 2-4 towns and rural India).
    • Key Challenges:  Digital divide in many regions, piracy and counterfeit products, domination by foreign entities such as Amazon etc.

     

    Key Initiatives to Promote E-commerce

    • Draft e-Commerce Policy: Aims to create a facilitative regulatory environment for growth of e-commerce sector. 
    • Open Network for Digital Commerce: It open source e-commerce network that connects shoppers, platforms, and retailers.
    • Others: Consumer Protection (E-Commerce) Rules, 2020; National Logistics Policy, 2022, India Stack etc.
    • Tags :
    • Invest India
    • E-commerce

    Articles Sources

    https://www.business-standard.com/industry/news/e-commerce-market-to-hit-325-billion-by-2030-rural-i
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