NEW DELHI, July 28 (Xinhua) -- Only 20-25 percent of India's 850 million internet users currently indulge in online shopping, and hence the country's e-commerce sector is set for significant growth in the coming years, the global strategy and management consulting firm McKinsey and Company said in its latest report.
Local media quoted the report as saying that India had witnessed a strong rise in e-commerce activity over the past few years, as there had been a rapid growth of quick commerce platforms delivering goods in a very short time.
According to the report, e-commerce accounted for only 7-9 percent of India's total retails (as of fiscal year 2023), and this share was expected to more than double to 15-17 percent by the year 2030.
The report cited two reasons for the next wave of growth in India's e-commerce sector: the increasing entry of new segments like B2B (business to business) and commerce and building materials, and the rising demand for purchasing from e-commerce platforms in tier-2 and tier-3 cities.
"Monthly incomes in the tier-2 and tier-3 cities grew by 18 percent between 2023 and 2024, which is higher than the growth seen in bigger cities," it added.
The report also suggested that e-commerce in India would go beyond simply disrupting traditional retail, and that it was expected to reshape the entire retail system, including areas like last-mile delivery and logistics. ■