E-Commerce: Global Scenario & Indian Scenario

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Global Scenario

United Nations Conference on Trade and Development (UNCTAD) has reported that global E- commerce sales hit $ 26.7 trillion in the year 2019. The value of global B2B e-commerce was $ 21.8 trillion, representing 82% of all e-commerce, including includes both sales over online market platforms and electronic data interchange transactions. Further, the B2C e-commerce value was $ 4.9 trillion in the year 2019.

The top three countries effecting B2C e-commerce sales were China, the United States of America and the United Kingdom. The top ten B2C companies are headquartered majorly in North America or China. The cross-border B2C ecommerce amounted to $ 440 billion in the year 2019.

Indian Scenario

The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest E-commerce market in the world by 2034.

According to the Indian E-commerce Industry Report (IBEF 2019), India e-commerce sector will reach US$99 billion by 2024 from US$30 billion in 2019, expanding at a 27% compound annual growth rate (CAGR), with grocery and fashion/apparel likely to be the key drivers of incremental growth. According to Forrester Research, Indian e-commerce sales rose by ~7-8% in 2020. The Indian online grocery market is estimated to reach US$ 18.2 billion in 2024 from US $1.9 billion in 2019, expanding at a CAGR of 57%.

The Government of India's policies and regulatory frameworks such as 100% Foreign Direct Investment (FDI) in B2B E-commerce and 100% FDI under automatic route under the marketplace model of B2C E-commerce are expected to further propel growth in the sector.

All these have facilitated and attracted investors from across the world to tap India’s e-commerce sector. India is one of the largest beneficiaries in investment funding in the e-commerce sector. This has enabled an upsurge of Indian e-commerce start-ups.

With the massive growth of food-tech industry, growth of online market places, the scope of further growth in the e-commerce sector in India is all but inevitable, especially considering the Digital India related initiatives of the Government of India.

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