Indian e-retail market likely to touch $150 bn by 2027: Report

New Delhi, Oct 12 (KNN) India’s retail market with the current worth of USD 50 billion, is expected to increase three times to USD 150–170 billion by 2027, said a study by management consulting firm Bain & Company.

The market in the year 2021 stood at USD 40 billion. The upward trend implies 25–30 per cent annual growth and a doubling of market penetration to 9–10 per cent over the next five years. 

According to the report, the online seller base grew by 35 per cent during 2020-21 while 40 per cent of the new sellers came from tier-II or smaller cities. “Growth in the e-retail market has been accompanied by rapid expansion in the seller base and efficient development in the logistics infrastructure.”

It indicates that India which currently has the third-largest shopper base globally with 180–190 million online shoppers in 2021, it is “well poised to surpass the US to have the second-largest shopper base in the next one to two years.” 

“Massive headroom in terms of smartphone penetration (36 per cent in India versus 63 per cent in China and 76 per cent in the US) and affluence (around USD 2,000 per capita in India versus around USD 12,000 in China and around USD 69,000 in the US), in addition to already low data prices, provide the perfect ingredients for sustained growth,” a report by FE said.

To expand the e-commerce ecosystem, the government introduced the Open Network for Digital Commerce (ONDC) which aims to ‘open’ e-commerce in India from the current duopoly of Amazon and Flipkart in India and onboard.  (KNN Bureau)