New Delhi, July 8 (KNN) Rising from a low of USD 38 billion in 2021 Indian e-commerce market is likely to reach USD 120 billion by 2026, as per a latest report.

The e-commerce market and retail business is expected to drive the economic growth of the warehousing and logistics sector in the country.

According to a joint report by FICCI and property consultancy Anarock released on Thursday, the market size of retail segment is estimated to grow to more than USD 1.8 trillion by 2030 from USD 705 billion in 2020.

“Additionally, COVID-19 has accelerated the growth of e-commerce across India. Online shopping has increased significantly in Tier-II and Tier-III cities as well due to the easy availability of the internet on cheaper tariffs and restrictions on physical movement during the time of the pandemic,” said the report.

Due to this a push is provided to the warehousing and logistics sector in the tier-2 and tier-3 cities.

With the policy support provided by the government and the constant push and ambitions for infrastructure development is expected to ride the next wave of growth for the industrial, warehousing, and logistics sectors in India, it added.

The report highlighted the need for a ‘China plus one’ strategy for manufacturing as the supply chain for various companies was disrupted at the time of forced lockdowns in China.

India stands as top contender as many companies are now looking to shift their base away from China, or are keen to open a new manufacturing facility in other countries.

It further said the National Logistics Policy is in the draft stage and is expected to change the face of the logistics sector in India. (KNN Bureau)