Click to Cart: How E-Commerce is changing the Indian Business Landscape
India’s e-commerce sector has transformed the way business is done in India and has opened various segments of commerce ranging from Business-to-Business (B2B), direct-to-consumer (D2C), Consumer-to-Consumer (C2C) and Consumer-to-Business (C2B).
Major segments such as D2C and B2B have experienced immense growth in recent years.
India’s e-commerce industry, valued at Rs. 10,82,875 crore (US$ 125 billion) in FY24, is projected to grow to Rs. 29,88,735 crore (US$ 345 billion) by FY30, reflecting a compound annual growth rate (CAGR) of 15%.
According to a recent report by EY India, generative artificial intelligence (GenAI) could enhance productivity in India’s retail industry by 35-37% over the next five years.
India’s e-retail market is projected to exceed US$ 160 billion by 2028, driven by strong post-pandemic growth and significant potential for expansion, as online spending currently represents only 5-6% of total retail spending compared to much higher rates in the US and China.
India is poised for massive growth, with India’s quick commerce market expected to reach Rs. 86,001 crore (US$ 9.9 billion) by FY29.
India’s Business-to-Business (B2B) online marketplace is expected to be a US$ 200 billion opportunity by 2030.
The Indian e-commerce market is projected to grow from US$ 123 billion in FY24 to US$ 292.3 billion in FY28, reflecting a compound annual growth rate (CAGR) of 18.7%.
The E-commerce industry has been directly impacting Micro, Small & Medium Enterprises (MSME) in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well. The Indian E-commerce industry has been on an upward growth trajectory and is expected to become the second-largest E-commerce market in the world by FY34.
Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector. The explosive growth in India’s e‑commerce landscape presents a golden moment for temporary and staffing agencies. By aligning operations with evolving market dynamics, tapping into rising gig employment, and leveraging regulatory shifts, staffing firms can unlock significant new avenues for growth.
– Sumit Sarabhai, Chief Business Officer (General and Industrial Staffing), Spectrum Talent Management