India makes smart moves to e-commerce transformation
DIGITALISATION is not only transforming the way business is conducted in India, but it is also the engine behind the second most populous country’s soaring electronics and apparel e-commerce sales.
The Indian e-commerce market could be worth US$200 billion by 2026, from $38.5 billion in 2017, according to India Brand Equity Foundation (IBEF), a trust established by the government’s department of commerce, ministry of commerce and industry to promote business and raise awareness about Indian products.
Rising smartphone penetration, the launch of 4G mobile networks and increasing consumer wealth are fuelling this growth in the sector. Between April and June last year, smartphone shipments in India grew by 9.9 per cent year-on-year to 36.9 million, reveals the IBEF.
Business developments involving the three most popular online retail companies operating in India are also an important factor in the upward trajectory in e-commerce sales.
Bengaluru-based e-commerce company Flipkart has now been acquired by the USA’s Walmart giant for $16 billion.
E-tailer Paytm Mall has established the Paytm Payment Bank — India’s first bank with zero charges for online transactions, no minimum balance requirement and a free virtual debit card.
Elsewhere, Amazon has acquired a 49 per cent stake in Indian retail and fashion conglomerate Future Group, allowing both companies to sell products on each other’s platforms. Amazon India has also launched the Amazon Marketplace Appstore.
Meanwhile, a number of Indian government initiatives are encouraging the buoyant e-commerce sales, such as a plan to roll out a 5G fibre network complementing Digital India, which is aimed at transforming the country into a “digitally empowered society”.
Skill India intends to develop young talent, whilst Startup India is promoting wealth creators. Make in India encourages international businesses to manufacture their products in India and the government has also increased the limit of foreign direct investment (FDI) in the nation’s e-commerce marketplace, notes the IBEF.
Shivani Gupta, senior banking and payments analyst at GlobalData, a leading data and analytics company, observes: “The underlying potential for online purchases, coupled with favourable government policies, and online shopping events are expected to further drive the e-commerce market in India.”
Originally published at https://aircargoeye.com on January 27, 2020.
