India's E-Retail Surge: A New Era of Shopping

India's e-retail market is set to soar to USD 170–190 billion by 2030, driven by rising discretionary spending. Despite a slowdown to 10-12% growth in 2024, fiscal policies are expected to boost growth from 2025. Factors like higher GDP and consumer adoption in Tier-3 cities will contribute.

The Indian e-retail market is poised for significant expansion, with expectations to reach USD 170–190 billion by 2030. This trajectory is anticipated to be fueled by an 18% annual growth rate, energized by increasing discretionary expenditures, as indicated by a Flipkart and Bain and Company report.

The study notes a deceleration in e-retail growth to 10-12% in 2024, following a historic peak of 20% due to macroeconomic pressures. However, strategic fiscal and monetary interventions are predicted to catalyze a resurgence in growth, particularly from the 2025 festive season onward.

Driving forces include rising GDP rates, with regions boasting over USD 3,500 per capita GDP showing significantly higher e-retail participation. The market evolution will also witness enhanced seller diversity and consumer engagement across smaller cities, fostering a broader retail ecosystem in India.

(With inputs from agencies.)