India Ecommerce Market Grew 25 pc To Touch $38B In FY21
- ByAyushi Ray | August 17, 2021
With the Pandemic and necessary lockdowns India ecommerce market grew 25 pc to touch $38B in FY21. A report by Bain & Company and Flipkart titled – How India Shops Online 2021 – noted, “The fiscal year ending March 2021 was one of contrasts for India’s retail market. The overall retail market shrunk by 5 percent, along with a 7.3 percent contraction in GDP. However, the Indian e-retail market saw a 25 percent growth despite a 2-month national lockdown and multiple prolonged disruptions in regional pockets over the year.” The e-retail market is expected to grow exponentially by $120–140 billion by FY26, increasing at approximately 25 percent – 30 percent per annum over the next five years.
India is at present home to the third-largest online shopper base which consists of 140 million people, and is only behind China and the US. Added to this, the internet user base is around 625–675 million. According to the report, the e-retail penetration in India was at 4.6 percent by the end of FY21 with COVID-19 environment of safety and convenience driving the growth. It added, “We expect the surge in penetration to sustain post stabilisation, as a similar trend has been seen globally.” The growth of e-tail in India was largely driven by top eight metro cities where the report noted that one in three people shopped online at least once in the last financial year.
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