India E-commerce 2025: The ₹10 Lakh Crore Industry and Where It Is Headed

India e-commerce just hit a milestone that would have seemed impossible a decade ago. The market is now valued at over ₹10 lakh crore (US$125 billion) and growing at a pace that is making global investors sit up and take notice.

But what do these numbers actually mean? And where is this industry headed? Let me break it down in plain terms.

The Big Picture: India E-commerce by Numbers

According to IBEF (India Brand Equity Foundation), here are the key statistics:

• Current market size: ₹10,82,875 crore (US$125 billion) in 2024
• Projected size by 2030: ₹29,88,735 crore (US$345 billion)
• Growth rate: 15% CAGR through 2030
• Expected size by 2035: US$550 billion

To put this in perspective, e-commerce currently accounts for 8% of India total retail market. By 2028, this will reach 14%. The headroom for growth is massive.

Who Is Shopping Online?

The profile of Indian online shoppers is changing rapidly:

• 125 million new shoppers joined in the last 3 years
• 80 million more expected by 2025
• Gen Z (born after 1997) = 40% of all e-retail shoppers
• 60% of orders now come from Tier-2 and smaller cities

This is not just a metro phenomenon anymore. India beyond the big cities is driving growth.

How Indians Pay Online

The payment landscape has completely transformed. According to data compiled by Payments CMI:

• UPI: 55% of all e-commerce payments (the clear winner)
• Credit cards: 25%
• Digital wallets: 7%
• Cash on delivery: 5% (dropping fast)
• Net banking: 3.5%
• Buy Now Pay Later: 3.2% (growing rapidly)
• Debit cards: 2%

UPI has been revolutionary. What started as a simple payment method is now the backbone of digital India.

What Are Indians Buying?

The most popular categories according to Bain & Company research:

1. Grocery (29%) - Quick commerce is driving this
2. Fashion & Accessories (21%) - The biggest traditional category
3. Electronics (19%) - Phones, laptops, gadgets
4. Beauty & Personal Care (12%) - Growing fast
5. Health & Wellness (8%) - Post-pandemic boom

The Top Platforms by Traffic

Based on monthly visitor data:

1. Amazon India: 454 million visits
2. Flipkart: 202 million visits
3. Samsung: 51 million visits
4. IndiaMART: 44 million visits
5. Myntra: 37 million visits

Three Trends Reshaping the Market

1. Quick Commerce Explosion

10-minute deliveries have gone from novelty to necessity. Blinkit, Zepto, and Swiggy Instamart are handling two-thirds of all e-grocery orders. This segment is growing 40%+ annually.

2. Trend-First Fashion

Fast fashion is booming. Expected to reach $8-10 billion by 2028. Apps like Shein, Snitch, and Urbanic are changing how young India shops for clothes.

3. Hyper-Value Commerce

Platforms like Meesho offering ultra-cheap products have captured 12-15% of the market, up from 5% in 2021.

The Investment Pouring In

Global players are betting big on India:

• Amazon: Committed US$26 billion by 2030 (US$11 billion already invested)
• Walmart: Continues heavy investment in Flipkart
• Reliance: Building JioMart as a major player
• Tata: Investing in multiple e-commerce ventures

Challenges That Remain

It is not all smooth sailing:

• Only 64% population is banked - Financial inclusion is still a challenge
• Rural infrastructure - Last mile delivery remains expensive
• Returns and fraud - Growing pains of a maturing market
• Profitability - Most players still burning cash

What is Next?

Looking ahead to 2025-2030:

• Social commerce will grow significantly (projected US$37 billion by 2025)
• Voice and vernacular shopping will increase
• AR/VR for trying products virtually
• More international shopping (US, Australia, China are top sources)
• Consolidation among smaller players

My Take

India e-commerce story is just getting started. We are barely at 8% of total retail. Countries like China are at 30%+. The runway for growth is enormous.

For shoppers, this means more choices, better prices, and faster delivery. For sellers, it means access to 500 million+ potential customers.

The next five years will be exciting. Buckle up.

Sources: IBEF, Bain & Company, Payments CMI, Economic Times