Report Description

Forecast Period


Market Size (2023)

USD82 Billion

CAGR (2024-2029)


Fastest Growing Segment

Electronics & Appliances

Largest Market

North India

India Online Retail market is expected to reach over USD250 billion during the forecast period, due to the increasing usage of smart phone and convenience of purchasing daily essentials & luxury products from any location, among others. Such factors are driving market growth.

India Online Retail Market Scope

The purchasing and selling of goods & services using online channels, mostly through the internet and other media forms, is referred to as online retail market. It entails the transactional activities carried out by retailers through online shopping platforms, and marketplaces that facilitate the product exchange between businesses and consumers.

To present their product options, attract customers, and enable smooth transactions, online retailers use a variety of channels, including websites, mobile apps, and social media platforms. The market provides an extensive range of products in numerous categories, including electronics, clothing, cosmetics, household goods, groceries, and more.

India Online Retail Market Overview

The growing popularity of India online retail market is fueled by various factors including rising internet use, smartphone usage, convenience, a wide variety of products, competitive pricing, and social media influence.

Indian e-commerce industry has seen a significant growth in the past few years, which has resulted in the emergence of a huge retail segment. The development of technological advancement such as augmented reality (AR), virtual reality (VR), the Metaverse, and experiential retail, are transforming customer interactions, and has contributed significantly in the increase of the number of online retailers. Additionally, benefits of online retail, such as discount offers, easy access, range of availability of the product on a single platform, etc. are expected to boost the market growth.

The online retail industry in India is significantly influenced by the availability of a wide variety of products such as electronics, apparel, cosmetics, household goods, groceries, and other products available on e-commerce platform. The wide range of product selection meets the needs and preferences of Indian consumers. Furthermore, online retailers often collaborate with both local and international brands, giving consumers access to a wide variety of national and international products that may not be accessible in local physical stores.

Moreover, discounts, deals, and attractive pricing strategies play a substantial role in promoting the India online retail market. Discounts, flash sales, and promotional offers are constantly offered by e-commerce platforms, attracting price-conscious customers. These low rates, along with the convenience of home delivery, make online shopping attractive to many Indian consumers. Furthermore, the availability of numerous payment methods, such as cash-on-delivery digital wallets, contributes to the ease and accessibility of purchasing goods online.

India Online Retail Market Drivers

The growth of the online retail sector is expected to be supported by increasing usage of smartphones and internet penetration, along with rising internet users for making online purchases across the country. India has a population of more than 1.3 billion, and as of 2022, India has 692 million total internet active users, including 341 million from urban and 351 million from rural Indian, according to the Internet and Mobile Association of India. More and more people are able to access the internet and engage in online shopping because of the widespread availability of affordable mobile phones and data plans. For instance, according to RAI (Retailers Association of India), India’s online retail market contribution to the overall retail market in India, is estimated to be 10.7 percent by 2024, when compared to 4.7 per cent in 2019.

However, the convenience and accessibility provided by e-commerce platforms is another significant driver of the Indian online retail industry. Online retailers allow customers to browse and purchase things from the comfort of their own homes. The purchasing process has been made simpler by e-commerce platforms by providing a large selection of products, alluring discounts, and safe payment methods. For instance, in 2022, according to the Internet and Mobile Association of India (IAMAI), around 346 million Indian consumers are engaged in online transaction including digital payments, and e-commerce. Furthermore, the availability of quick service providers has assured timely delivery to some of the remote locations, allowing online retailers to expand their reach.

Additionally, the Indian government's focus on digitalization, as well as programmes like "Digital India" and “Start-up India," contributed to an encouraging environment for online retailers. Furthermore, regulatory changes and the implementation of the Goods and Services Tax (GST) have streamlined the taxation structure, making it easier for online retailers to operate across states. As a result, government initiatives and policy reforms are the significant driving factors for fostering the growth of the India online retail market.