The number of online shoppers is projected to grow significantly, with rural India expected to see a 22% compound annual growth rate (CAGR) to 88 million and urban India 15% to 263 million by 2026. The Unified Payments Interface (UPI) is a key enabler, handling $1.5 trillion in transactions in 2022, with 81% smartphone penetration expected by 2026.
India’s e-commerce sector is set for exponential growth, with predictions of reaching US$ 325 billion by 2030 alongside a digital economy worth US$ 800 billion. Currently valued at $70 billion, India’s e-commerce market accounts for 7% of overall retail, fueled by its 881 million internet users – the world’s second-largest. By 2030, India is anticipated to be the third-largest online retail market, boasting 500 million online shoppers.
The rise is powered by increasing internet access, expected to reach 87% of households by 2025, particularly through mobiles, with usage up 21% from 2019. The number of online shoppers is projected to grow significantly, with rural India expected to see a 22% compound annual growth rate (CAGR) to 88 million and urban India 15% to 263 million by 2026.
Affordable data prices at $0.17 per gigabyte drive internet adoption, especially among the growing smartphone user base, projected to reach 1.18 billion by 2026. The Unified Payments Interface (UPI) is a key enabler, handling $1.5 trillion in transactions in 2022, with 81% smartphone penetration expected by 2026.
Government-supported digital infrastructure and initiatives aim to facilitate rural e-commerce growth, with over 60% of demand expected from tier 2-4 towns and rural areas by 2026, supported by efficient logistics policies.
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