The growth of the Indian E-commerce market has proliferated over the years. Goldman Sachs has further revealed in a report that the value of the Indian E-commerce sector is expected to hit a staggering $99 billion when the online E-commerce penetration doubles to 11%.
Goldman Sachs’ analysis sheds light on the fact that the pace of growth of the Indian E-commerce market is expected to transcend the other major economies such as the US, China, UK, Brazil and Europe over the next four years.
The COVID-19 pandemic has only pushed the growth of the E-commerce market across the world. The sector is estimated to rise by over 18% in the pandemic-hit year. Analysis for 2021 and 2022 indicates a yearly growth of 33% and 28% respectively.
Not surprisingly, among the various markets enjoying the benefits of E-commerce, online grocery has demonstrated to be the biggest growth driver for E-commerce. The online grocery market is anticipated to rise by $29 billion in India over the next five years. A study has shown that the pandemic has driven consumers to buy groceries online more frequently than ever.
The electronics segment has also seen a surge in online penetration amid the new quarantine lifestyle and economy. As a matter of fact, consumers are switching to e-commerce for essential as well as non-essential good.
Analysts at Goldman Sachs stated:
The Indian E-commerce industry has had a significant influence on the MSMEs by offering financial and infrastructural assistance. Growth in the industry will also improve the scope for employment, boost export sales and provide better alternatives to consumers.