The COVID-19 pandemic helped drive further growth in India’s e-commerce sector, new research from GlobalData shows.
According to the firm’s E-Commerce Analytics, e-commerce payments in the country grew by 12.2 percent in 2020 and should reach $61.5 billion this year. Between now and 2025 sales are expected to grow at an 18.2 percent CAGR to reach $120.1 billion.
“The COVID-19 pandemic has fast-tracked consumers’ transition to digital payments in most markets, a trend also seen in India,” GlobalData lead analyst Ravi Sharma said. “With social distancing rules and closure of many brick and mortar stores, shoppers embraced online channels even for their day-to-day purchases.”
The impressive growth is supported by internet and smartphone growth due to a government push and high consumer digital literacy. That helped e-commerce sales grow during the pandemic even as overall consumer spending declined. Retail goods such as groceries, electronics, and healthcare products are frequently purchased digitally.
Leading e-commerce retailers Flipkart, Amazon and BigBasket have seen increased orders every month of the pandemic. Also helping matters are multiple options for shoppers including QR codes, UPI-enabled digital payments and buy now, pay later features.
“The COVID-19 crisis has accelerated digital payments shift in India and opened e-commerce to a whole new set of consumers and merchants who were not using online channels earlier,” Sharma said. “Rising consumer preference for online shopping, the proliferation of e-retailers and emergence of new payment methods will continue to drive e-commerce growth in India.”
