Indian e-commerce industry to become second largest in world by 2034: Report

New Delhi, June 15 (KNN) India’s e-commerce industry will become the second largest in the world, surpassing the US by 2034, according to a report by Shiprocket X. 

The State of Cross-Border Trade survey revealed that India’s total merchandise exports continue to cross the USD 100 billion mark, for the second consecutive quarter in a row, amounting to USD 105.8 billion, during Q3 (October-December) of 2021-22. 

Key factors that led to the tremendous growth of the exports include a massive post-pandemic push that made retailers shift from mere brick-and-mortar establishments and embrace e-commerce both locally and globally. 

Other catalysts included the active participation of consumers in shopping with global retailers, it said. 

The report points out that government’s active participation has helped the sector grow.It has actively provided the necessary impetus for the growth of the country’s export sector, which has powered a total export revenue of USD 417 billion in FY22.  

It also pointed out that 15 clusters across India clocked a surge in merchandise exports, with Gujarat contributing the highest to overall exports, followed by Rajasthan and Delhi. 

These statistics point towards a strong demand indication for cross-border trade of Indian products, it said.

Akshay Ghulati, Co-Founder, Strategy & Global Expansion, Shiprocket said, “Indian MSMEs are the powerhouse of the country with a significant contribution to our GDP. We have witnessed firsthand, the tremendous potential of Indian MSMEs in driving cross-border trade, and hence, at the core of Shiprocket lies the passion to empower the merchants of Bharat.”

With the increasing acceptability of Indian products in the international retail market, MSME exports are playing a crucial role in powering 40 per cent of India’s overall exports, contributing to approx. 6.22 per cent of the country’s GDP. 

The transformational changes in consumer buying behaviors have also played a key role in the growing opportunity in the global e-commerce trade. 

With around 63.4per cent million units spread across the geographical expanse of India, MSME exports are going to play the role of a catalyst in restoring the strength of the Indian economy. 

FISME in a study paper has said that e-commerce export potential is in the range of USD 200 to USD 300 billion. (KNN Bureau)