Market size of online retail industry in India FY 2019-2023

The market size of the online retail industry in India amounted to 60 billion U.S. dollars in financial year 2023. It showed an increasing trend since the financial year 2019.

Growth of online retail industry in India

The rapid expansion in the size of online retail could be attributed to the increase in the market size of e-commerce, a favorable government policy of 100 percent FDI flows into e-commerce, and an increasing base of digital buyers in India. The market size of the e-commerce industry is estimated to reach 200 billion U.S. dollars by 2027, a massive jump from 2014. Additionally, the number of digital buyers in the country has been on the rise since 2014. Affordable mobile internet, mainly from Reliance’s Jio has been a catalyst for change and led to a drastic growth in the value of mobile retail e-commerce in 2020.

Consumer perception of online retail during coronavirus

The coronavirus (COVID-19) pandemic led to an increase in the share of consumers shopping online. Most consumers opted for online retail to socially distance, avoid queues in the supermarkets and other shops, and to minimize their time spent outside. Unsurprisingly, they preferred to shop for essentials which included food, personal hygiene, and household cleaning products during this time.