The Indian e-commerce market is set to cross the $200 billion mark in 2025, growing at a rate of 12.5% as consumer appetite for online purchases and trust in digital payments increases, according to a new forecast by GlobalData.

“The e-commerce market in India has experienced rapid growth in recent years, driven by broader digital adoption, increasing internet and smartphone penetration, and the availability of secure online payment tools,” said GlobalData senior banking and payments analyst Poornima Chinta in a press release. “The growing popularity of online shopping events such as Flipkart’s Big Billion Days, Myntra’s Big Fashion Festival, and Amazon’s Great Indian Festival has further supported the surge in India’s online shopping market.”
 
GlobalData forecasts that the Indian e-commerce market will reach Rs 17.7 trillion ($211.6 billion) this calendar year. With a projected compound annual growth rate (CAGR) of 11.5% between 2025 and 2029, the market could reach Rs 27.3 trillion ($326.7 billion) in 2029.

Factors which are contributing to sustained Indian e-commerce growth include government-led policy support, increasing digital integration in retail, and rising adoption of AI driven payment options. The Indian government rolled out Goods and Services Tax rate cuts on September 22, applying to sectors including fashion and wellness goods, and large businesses including Reliance Retail and Flipkart announced their participation in the 100-day ‘GST Bachat Utsav,’ highlighting GST discounts to promote consumer spending.
 
“India’s ecommerce market will continue its upward growth trajectory over the next few years with consumer appetite for online shopping showing no signs of waning,” said Chinta. “The country’s young, upwardly mobile demographic, growing popularity of alternative payment solutions, favourable regulatory initiatives, and technological advancements are converging to transform how Indians shop- creating new market opportunities, improving customer experiences, and attracting fresh investment.”