Budget 2024: Indian e-commerce industry expected to cross $350 bn by 2030, says Economic Survey

The Economic Survey 2023-24 tabled on Monday said that the Indian e-commerce industry is likely to surpass the $350 billion-mark by 2030. It added that the share of modern retail, including e-commerce, will go up to 30-35 per cent of the total retail over the next 3-5 years. 

It explained that the e-commerce industry's upward trajectory in India during the past few years was marked by technological advancements and new-age business models coupled with government policies.

Some policies listed in the Economic Survey are Digital India program, UPI, One District-One Product (ODOP), Open Network for Digital Commerce (ONDC), new foreign trade policy, relaxation in FDI limits and Consumer Protection (E-Commerce) (Amendment) Rules 2021. 

The economic survey, however, stated that the rise of e-commerce in India is constrained by inadequate skills for online selling, data privacy issues, and increasing online fraud. "It becomes imperative to educate users on the safe use of e-commerce platforms," the survey noted. 

Moreover, the ONDC, which started in January 2022, also expanded from its initial domains of mobility and food and beverage to other domains like fashion, beauty and personal care, grocery, home and kitchen, on-network logistics, agriculture, gift cards, Farmer Producers Organisations (FPOs) and artisanal works. 

During Q4FY24, there was an 18 per cent rise in food and beverage orders due to its robust network of more than 95,000 restaurants and top brands serving 347 cities in India. It mentioned that Tata Neu, Dominos, and Ola have added food services to their apps whereas others like MagicPin and PayTM focus on competitive pricing and special deals. 

In the grocery sector, a growth of 52 per cent in orders was achieved during the same period. "Leading players such as Paytm and Otipy are investing in advanced digital storefronts and QR code technology. Collaborations with brands like Catch are enhancing product offerings, which currently include 6.3 million stock-keeping units (SKUs)," the survey mentioned.