New Delhi, Oct 7
Driven by robust rural demand, Indian e-commerce market is expected to reach $325 billion in 2030, with a strong 21 per cent compound annual growth rate (CAGR), a report said on Monday.
The retail sector, which is valued at $753 billion in FY23, is projected to post a 9.1 per cent CAGR until FY27, the highest among the large economies, according to the FICCI-Deloitte report.
The findings showed that retailers are rapidly adapting to omnichannel strategies, employing tech-enabled experiential selling, and launching new private labels to cater to India’s price-sensitive yet aspirational consumers.
The expansion of retail networks in tier 2 and 3 cities is expected to contribute a significant portion of this growth, the report noted.
“Increased smartphone penetration, internet access and growing disposable incomes have fuelled this expansion. Quick commerce, which focuses on rapid delivery of essentials, has also disrupted traditional supply chains, reshaping consumption patterns,” mentioned the report which was launched at an event in the national capital.
The country is expected to be the world’s third-largest consumer market by 2030.
This growth is being fuelled by heightened competition from direct-to-consumer (D2C) brands, a rising focus on premiumisation, and innovative new product development tailored to the needs of young and middle-income consumers.
“Additionally, FMCG exports are on the rise, contributing significantly to foreign direct investment (FDI),” mentioned the report.