India to become the second-largest e-commerce market by 2034: Report

India is on its way to becoming the world’s second-largest e-commerce industry by 2034, according to a report from Shiprocket. As per the report, the country has also been ranked as the 9th highest contributor to global cross-border trade growth.

Several key factors have contributed to this increase, such as the significant post-pandemic push that prompted retailers to transition from traditional brick-and-mortar stores to embracing e-commerce on a local and global scale. Additionally, active consumer engagement in shopping with international retailers has acted as a catalyst.

The simplification of cross-border trade has been a major focus for the Indian government, as it represents 20% of global e-commerce and plays a crucial role in determining the ease of doing business in the country. The Indian government has actively supported the growth of the country’s export sector, resulting in a total export revenue of US$ 417 billion in FY22.

In addition, India’s total merchandise exports surpassed the US$ 100 billion mark for the second consecutive quarter, reaching US$ 105.8 billion during Q3 (October-December) of 2021-22.

With Indian products gaining increased acceptance in the global retail market, Micro, Small & Medium Enterprises (MSMEs) exports play a crucial role, accounting for 40% of India’s overall exports and contributing approximately 6.22% to the country’s Gross Domestic Product (GDP). Fifteen clusters across India experienced a surge in merchandise exports, with Gujarat contributing the highest share, followed by Rajasthan and Delhi. These statistics indicate a strong demand for cross-border trade of Indian products.
Source: Economic Times