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'Indian E-Commerce Market to Account for 2.5% of GDP by 2030'

India will have the second-largest digital population in the world with 1 billion users by 2030, powered by online mobile penetration, it added.
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'Indian E-Commerce Market to Account for 2.5% of GDP by 2030'
Mumbai: The e-commerce market will account for 2.5 per cent of the India's GDP by 2030, growing 15 times and reaching $300 billion, a report said today.
 

The current market size of e-commerce is $20 billion.
 

The report by Goldman Sachs cited the "hyper growth in affordable smartphones, improving infrastructure, and a propensity to transact online," as key growth factors.
 

"Further, India's attractive demographics - the youngest population in the world - should lead to over 300 million new online shoppers in the next 15 years, making e-tailing the largest online segment," it said.
 

The report identified e-retailing, online travel, digital advertising market and electronic payments as segments that could "potentially catalyse domestic companies into multi-billion dollar businesses".
 

India will have the second-largest digital population in the world with 1 billion users by 2030, powered by online mobile penetration, it added.
 

"India has enough spectrum and telecom infrastructure to provide 3G data coverage to 25-30 per cent of the population," it said, adding that "further, 3G-enabled smart phones are available for $40 with more than 900 phones launches last year".
 

The payment landscape is also evolving fast with the launch of digital wallets and payment banks, despite 60 per cent of e-commerce transactions in cash-on-delivery mode, the report pointed out.
 

"Logistics and infrastructure are bottlenecks, but also indirect drivers for online adoption," it added.
 

Over $6 billion of private funding has come into India in 2014 and "significant funds are still waiting, implying a potent eco-system is in place," according to the report.



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