New Delhi [India], Jan 8 (ANI): India is the fastest-growing market for e-commerce sector with revenue expected to increase from 39 billion dollars in 2017 to 120 billion dollars this year, growing at an annual rate of 51 per cent -- the highest in the world.
A new report by the Competition Commission of India (CCI) released on Wednesday shows that e-commerce in the goods category India has grown at a compound annual growth rate (CAGR) of 57 per cent in last seven years and is expected to grow by 18.6 per cent till 2022.
The online retail market in India is estimated to be worth 17.8 billion dollars in terms of the gross merchandise value (GMV) as of 2017. As of July 2018, the number of transactions in e-commerce retail was 1 to 1.2 million per day and on e-commerce platforms was 55 to 60 million per month.
The growth engine has been smartphones with only or primarily online retailers or e-tailers witnessing their sales mix shifting heavily into smartphone and electronics, supported by direct partnerships with brands, said the report.
The sales from online travel bookings in India is likely to reach 39.09 billion dollars by 2021, growing at a CAGR of 16 per cent between 2015 and 2021.
In hotel booking, an increase has been witnessed across all star categories in reservations using online reservation systems and other websites, with the all-India average increasing from 10.3 per cent in FY 13 to 24.5 per cent in FY17.
"With the growth in smartphone penetration and access to internet, the growth of e-commerce has been enabled through introduction of cash on delivery at a time when Indians were still adapting to digital payments," said the CCI report.
"Discounts and deals offered by the marketplaces, faster deliveries including one-day delivery and access to a large product range -- especially in tier II and tier III cities where choices were limited -- revolutionised retail as well as service delivery."
The report said consumers benefit from e-commerce for the convenience of accessing it anytime and from anywhere with internet access. The mobile phone subscriber base in India has increased from 904.51 million in March 2014 to 1.17 billion in September 2019.
At the same time, the number of internet users increased from 445.96 million in 2017 to 665.31 million in 2019 and is expected to increase to 829 million in 2021.