Mumbai, Feb 20 : Driven by Internet penetration, digital payment infrastructure and a young, tech-savvy population, the Indian e-commerce sector is expected to touch $550 billion by 2035, growing at a CAGR of 15 per cent, a new report said on Thursday.
In 2024, the value of this vibrant and disruptive retail segment was estimated at $125 billion, and is likely to touch $345 billion by 2030-end.
E-commerce has become a fulcrum of change for the Indian retail industry, according to a joint report by ANAROCK and ETRetail released here.
Also, post-COVID, the mall vacancy rate has declined from 15.4 per cent in 2019 to 8.1 per cent in 2024.
The report mentioned that an increasing Internet penetration, smartphone adoption, digital payment infrastructure, and a young, tech-savvy population are driving this growth.
Government initiatives like ‘Digital India’ and rapid improvements in the country’s logistics and supply chain networks have further boosted its growth prospects.
Besides the metros, e-commerce players are also tapping the growing demand from smaller towns and cities.
“The share of online shoppers from tier 2 and 3 cities has increased to 56 per cent in FY2024 from 46 per cent in FY2020, and is expected to reach 64 per cent by FY2030,” according to Anuj Kejriwal, CEO and MD, ANAROCK Retail.
Meanwhile, the overall Indian retail industry’s market size is expected to touch $2,500 billion by 2035, witnessing a three-fold increase compared to 2019.
The growth is powered by rising disposable incomes, increasing urbanisation, a young and tech-savvy population, and an ever-expanding middle class.
Today, the industry is defined by sprawling malls and thriving e-commerce alongside traditional bazaars, said Kejriwal.
New mall supply across the top seven cities was a mere 1 million square feet in 2024, while absorption stood at 6 million square feet.
Current supply and demand trends for mall spaces indicate a post-pandemic rebound in leasing, now largely driven by experiential retail, according to the report.
Apparel and the food and beverages sectors consistently contribute nearly 45 per cent of demand, remaining the top footfall drivers. (IANS)