July 19, 2023
India’s digital economy is projected to expand from the current US$ 100 billion to US$ 1 trillion
In 2022, business-to-business (B2B) e-commerce made up around 1% of the overall B2B market in India, and the share is expected to reach nearly 5% by 2030
The initial US$ 100 billion growth came from consumer digitization
Product marketplaces, service marketplaces, and marketplace infrastructure startups are the emerging categories within India’s B2B marketplace
India’s online B2B marketplaces have the potential to reach US$ 200 billion by 2030, according to a report released by Bessemer Venture Partners.
Several factors are expected to contribute to this growth including increasing Internet penetration, growth of digital infrastructure, favourable regulatory policies, and a conducive cross-border environment. Additionally, instant payments through a Unified Payments Interface (UPI), formalization of businesses through Goods and Services Tax (GST), increased manufacturing activities through Production Linked Incentive (PLI) schemes, and companies adopting de-risk strategies for their supply chains will further contribute to the industry’s growth.
As India’s economy is expected to grow from US$ 3.75 trillion to US$ 6 trillion over the next decade, a significant portion of this growth is anticipated to come from the digital economy, projected to expand from the current US$ 100 billion to US$ 1 trillion.
While the initial US$ 100 billion growth came from consumer digitization, the next substantial expansion is predicted to be driven by business digitization and online transactions, specifically through B2B online marketplaces.
In 2022, B2B e-commerce made up around 1% of the overall B2B market in India, but the report foresees this share rising to nearly 5% by 2030.