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India To Overtake US As World’s Largest E-Commerce Market By 2034: Study
Indian postman Ratan Lal with a parcel. Photo credit: SAJJAD HUSSAIN/AFP/GettyImages
The Indian e-commerce market is set to overtake the US and become the second largest in the world in less than two decades, going head-to-head with China for the numero uno position, according to a report by global payments firm Worldpay. The report said the e-commerce market is expected to grow exponentially with emerging markets leading the charge — particularly India, where the segment is predicted to mature by 28 per cent per year from 2016 to 2020.
"The Indian e-commerce market is predicted to reach $63.7 billion (Rs.4,34,200 crore) by 2020 and overtake the US by 2034, opening up huge opportunities for companies selling online," said Worldpay Vice-Chairman Ron Kalifa in a statement.
Young people shopping via smartphones are responsible for the increase in India's online spend, the report said, adding that with 70 per cent of the population below the age of 35, millennials are expected to continue driving rapid digitisation. But the report said that to position their business for success, merchants must recognise India's potential for e-commerce growth and its payment preferences.
Transfers and cash dominate the online payment landscape, with 27 per cent of the market preferring bank transfers, followed by cash on delivery at 22 per cent. "As the country's payment infrastructure develops, new methods are expected to rise in popularity. Though only 8 per cent of online shoppers use e-wallet currently, mobile wallet market is projected to reach $5.1 billion in 2020," said the report.
With inputs from IANS
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