In spite of the increasing value of online commerce sales per capita in the last five years, India’s online commerce market will only reach its full potential through the implementation of financial education programmes, an increased access to electronic payments and investment in digital payments infrastructure.
India is home to one-sixth of the world’s population, making it the second-largest consumer market globally behind China. Although it is still largely a cash-driven economy, India has made significant strides towards electronic payment adoption in recent years.
Chief among these developments has been the government’s initiative to aid in this journey through the Indian Prime Minister Modi launching ‘Digital India’ campaign on July 2015. The initiative includes plans to connect rural areas with high-speed internet networks and includes three main components: developing digital infrastructure, delivery of services digitally and digital literacy.
GlobalData’s Online Consumer Payments Analytics shows that the value of the Indian online commerce has continuously increased in the last 5 years to reach $18.4bn in 2015. While the value of online commerce sales per capita was $4.80 in 2010, it reached $11.90 in 2014 and $14.70 in 2015. The largest year-on-year growth from the period was 45% and was reported in 2012, followed by 25% in 2011 and 24% in 2015. Apart from showing that Indian consumers have increasingly become more confident in engaging online, these figures also demonstrate that Modi’s strategy cannot deliver immediate results without appropriate context.
The value of online commerce sales per capita in India increased almost 24% in 2015
Source: GlobalData’s Online Consumer Payments Analytics [accessed on February 14, 2017]