Indian e-commerce industry to be 2nd largest globally

The Indian e-commerce industry is poised to become the second largest in the world. According to a survey report by Shiprocket X, the domestic e-commerce industry will surpass the US by 2034. 

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The survey report by Shiprocket X titled ‘The State of Cross-Border Trade’, highlighted the e-commerce industry of India is going to be the 2nd largest globally, surpassing the US by 2034. The changes in consumer-buying behaviour have also played a crucial role in the rising opportunities in the global e-commerce trade.

The survey report also stated that India’s total merchandise exports exceeded US$100 billion for the second consecutive quarter. Total merchandise exports amounted to US$105.8 billion, in the third quarter (October-December) of 2021-22.

One major factor, according to the report, that led to the tremendous growth in exports was the massive post-pandemic ‘push’ that had driven the retailers to shift from brick-and-mortar establishments towards e-commerce, both locally and globally. The other major factor was the active participation of consumers in shopping with global retailers.

The report noted that the government of India has provided the necessary impetus for the growth of the Indian export sector. Consequently, the total export revenue stood at US$ 417 billion in FY22. Gujarat made the highest contribution to India’s overall exports, followed by Rajasthan and Delhi.

The report said that with the increasing acceptability of Indian products in the international retail market, MSME exports are playing an important role in generating 40% of India’s overall exports. MSMEs are contributing about 6.22% of the country’s GDP. 

Mr. Akshay Ghulati, Co-founder, Strategy & Global Expansion, at Shiprocket said, “Indian MSMEs are the powerhouse of the country with a significant contribution to our GDP. We have witnessed the potential of Indian MSMEs in driving cross-border trade, and hence, at the core of Shiprocket lies the passion to empower the merchants of Bharat.”