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Indian Online Revenue to Reach US$79 Billion By 2025

Written by Adam Monks |
India Ecommerce

Insights into the growth of Indian ecommerce covering payment methods, target audiences, marketing, social media, economy and logistics

Economy

India is home to 1.32 billion people with a total GDP of US$10.7 trillion and is ranked as the 3rd richest country, according to the World Bank GDP per capita rankings. India’s GDP per capita is currently US$2,142 and expected to reach US$3,554 by 2025.

Digital User Insights

There are currently 548 million ecommerce users in India, with an additional 400 million users expected to be shopping online by 2025. Four years from now, these 948 million ecommerce users will spend an average of US$83.78 online.

India e-commerce

 
18.4% of 18-25 year olds in India use the internet for less than 30 minutes a day, compared to 22% who spend up to an hour, 32% who spend 1 to 2 hours, 17% who spend 2 to 4 hours, and 5.8% who spend 4+ hours online.
 

Product Categories

Total Indian eommerce revenue across all product categories is US$46 billion, and is expected to grow to US$79 billion by 2025. Electronics & Media is currently the leading product category in India, accounting for US$14 billion market share, followed by Fashion, which generates US$13 billion in sales.

By 2025, Electronics & Media will still be the most purchased online category, with an estimated value of US$25 billion, and second favorite, Fashion, will have an expected worth of US$23 billion.

Indian E-commerce

Logistics

In 2018, India was ranked 44th in the World Bank Logistics ranking.

Preferred Online Payments

Cards are a popular form of payment method in India although e-wallets are becoming more popular and are predicted to increase from 26% to 33% share by 2025, due in part to a governmental push toward a digital economy.

India e-commerce

Where does India buy from?

India imports mostly from China ($75.5 billion), United States ($31.6 billion), Saudi Arabia ($26.3 billion), United Arab Emirates($23.8 billion), and Iraq ($20.8 billion).

India E-commerce
 

Internet and Device Usage

Internet penetration in India is currently 52%, and should reach 74% by 2025. Smartphone penetration is also at 52%, but is projected to grow to 73.9% in the next four years.

46% of online shoppers in India buy via desktop, with smartphone (39%) and tablet (9%) not far behind.

Marketing

In 2020, total ad spend in India was US$12 billion, with digital advertising accounting for aprroximatlely US$2.3 billion and expected to reach US$3.8 billlion by 2025.

India e-commerce
 

Social Media

There are 631 million social network users in India currently, predicted to reach over 1 billion by 2025. Facebook, LinkedIn, Twitter and Zedge.net are the leading social networks.

India e-commerce
 

For more market insights, check out the ESW series of blogs covering a range of emerging ecommerce markets. For a more in-depth look at the India ecommerce market and the opportunities available to cross-border ecommerce brands, download Insight into India here:

 
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