How Growth Of E-Commerce In India Is Reshaping Its Economy?

How Growth Of E-Commerce In India Is Reshaping Its Economy?

India’s retail market is estimated to be worth $600 billion. And E-commerce comprises only 5% of the total. Approx. 40% of the Indian population lives in cities. So, it’s pretty clear that the Growth of E-Commerce has transformed the way business functioning in India. And it becomes clear that there’s still plenty of room for the transition to E-Commerce in India and reshaping the economy. With growing ‘Digital India’ movement, expectations are rising that internet penetration will increase in rural areas as well. Hence, it gives a lot of untapped opportunities for local players.


India has the second-highest number of internet users after China and is expected to touch around 650 million by 2026. In India, the rural market upholds a bunch of untapped opportunities but also comes with a challenge for market players. These challenges include awareness about the industry, transportation, internet services, warehousing, delivery, and many others.


India’s E-Commerce market is the fastest-growing market in the world. And, it jumped seven places in the UN Conference on Trade and Development’s B2C E-Commerce index, 2019. Propelled by the rising Smartphone user population, online shopping in India has become a hobby. In the last decade, we have experienced unforeseen growth of E-Commerce in India.

Revolution Of Indian E-Commerce Marketplace

According to experts, the coming decade will bring a revolution and transition to E-Commerce in India and will change the way people shop. Key players, who want to keep a hold on potential customers, need to keep them updated with upcoming trends and technology. The e-commerce future will be more about tech-savvy businesses and their customers.


If we go back a few years, people in India were afraid of buying anything from an online store. They wanted to experience the look and feel of the product in person. Gradually, many people started to take benefits of online shopping which offered those luring discounts and convenience. As expected, it inaugurated a trend in the market to shop from online stores. Moreover, people preferred the concept of shopping at their convenience without being physically drained.


If compared, India has around 260 million active online shoppers which are expected to increase to 350 million by 2020. Earlier, apparel and electronics was the most preferred segment, but a new segment is ready to dominate, which is grocery. Certainly, online grocery shopping has transformed how consumers look at Kirana stores now. In the coming years, supermarkets and retailers will be competing with online grocery stores for their existence in the marketplace.


Not just people, E-Commerce is benefiting and reshaping the Indian economy as well. How?

Evolving Indian Economy

The growth of E-Commerce in India has been in such a way that it has changed the way a business runs in India. Consequently, its growth has added up to the growth of the country’s economy. Here are some points which explain how the transition to E-Commerce in India is reshaping the Indian economy.

1) Creating Job Opportunities

Firstly, to set up an E-Commerce business, the entrepreneur has to tie up with warehouses, delivery companies, transportation, etc. And when such businesses expand, they need more people to work for them in different departments. Hence, areas such as inventory management, finance, transportation, etc. create more employment opportunities in the market.

2) Supporting SMEs and Entrepreneurs

A lot of big players give a platform to small businesses and entrepreneurs to run their businesses online. Moreover, businesses get a lot of benefits from these platforms and it gives them tremendous opportunities to reach more people. Further, major E-Commerce players run their business on this model which supports the growth of both the enterprises.

3) Attracting Foreign Direct Investment (FDI)

Indian consumers prefer buying international brands that interest them to invest in the Indian market. Consequently, this boosts the investor’s confidence to put their money in the Indian markets. International brands have always been popular among Indian consumers. So, they always prefer such brands over their homegrown brand. For the same reason, more and more international brands are exploring Indian markets and investing in them.

4) Digital India Movement

To boost the E-Commerce sector, the government has taken a lot of initiatives and Digital India is one of them which are motivating the people to opt for digitization. Digital India has a long way to go but it will certainly revolutionize the Indian E-Commerce market place and E-Commerce reshaping economy. The rise in Smartphone users has given a boost to this initiative and vice-versa. Therefore, it creates a tremendous opportunity for startups and small businesses as they can reach their potential customers via the internet.

The Road Ahead


The E-Commerce industry has been directly impacting the micro, small & medium enterprises (MSME) in India by providing means of financing, technology, and training and has a favorable cascading effect on other industries as well. The growth of E-Commerce in India is growing so rapidly that it will surpass the US to become the 2nd largest e-commerce market in the world by 2034.

Technology-enabled innovations and hyper-local sectors are supporting this sector as well and are getting benefits of going digital. Not just the hyper-local segment, e-commerce is great support for budding start-ups as well and the government has taken several initiatives to develop both the drives. To support these revolutionary movements corporate in India are getting digitized and by using AI they have created various platforms that add up to small businesses and help them to grow.


Beep is one such platform which values the hyper-local business and tries to revolutionize their way of doing business. It has created a platform for small businesses where entrepreneurs can explore and learn different ways to stay a step ahead in the competition. It has been created with a vision that will benefit such businesses while staying at par with the technology and latest trends. When E-Commerce is reshaping economy, Beep is a reliable E-Commerce marketplace that brings buyers and sellers on a single platform and facilitates transactions for their growth and expansion in the market.

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History of E-Commerce and Its Evolution