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Union Budget 2023-24
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:
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 * taxation in india,
 * major investors


E-COMMERCE

Fastest growing e-commerce market in the World

The Indian e-commerce industry has been on an upward growth trajectory. After a
surge in digital adoption during COVID-19, the Indian e-commerce market is
estimated to be worth over $55 Bn in Gross Merchandise Value in 2021. By 2030,
it is expected to have an annual gross merchandise value of $350 Bn. Further, as
of 2021, more than 348 Mn users were conducting online transactions, and nearly
140 Mn were shopping online. 

Young demography, increasing internet and smartphone penetration, and relatively
better economic performance are some key drivers of this sector. With 830 Mn
users, India is currently the 2nd largest internet market. In 2021, digital
wallets were the leading payment method for e-commerce transactions with a share
of 45.4%

Close to 100 per cent of pin codes in India have seen e-commerce adoption. More
than 60 per cent of transactions and orders in India come from tier two cities
and smaller towns. The e-commerce trend is gaining major popularity even in
tier-2 and tier– 3 cities as they now make up nearly half of all shoppers and
contribute three of every five orders for leading e-retail platforms. The
average selling price (ASP) in tier-2 and smaller towns is only marginally lower
than in tier-1/metro cities. Electronics and apparel make up nearly 70 per cent
of the e-commerce market, when evaluated against transaction value. Other new
upcoming categories within e-commerce include ed-tech, hyperlocal and food-tech;
E-Commerce funding in India grew by ~600% YoY in 2021

READ MORE

Discover Retail & E-commerce in India

10 Mn

Internet users added monthly

100%

FDI permitted in B2B E-commerce

$350 Bn

E-Commerce Market by 2030

Sector Expert
Arnav Kalia

Let us know your Investment Query

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REASONS TO INVEST

The India's online shopper base to be the 2nd largest globally by 2030, with
nearly 500-600 Mn shoppers
Internet penetration in India has grown significantly in the last 13 years –
increasing from 4.8% in 2008 to 61% in 2021
Over CY20-30, Tier 2+ cities will contribute 88% of new online shoppers and $150
Bn in cumulative incremental online retail GMV


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INVESTOR QUERY


FDI NORMS

100% FDI allowed under automatic route in B2B E-commerce and in marketplace
model of e-commerce. 100% FDI under Government approval route for E-Commerce by
Food Retail Companies, provided products retailed are manufactured and/or
produced in India.
100%

FDI Allowed

DID YOU KNOW?

E-Commerce of Single Brand Product Retail allowed, provided company establishes
physical stores within 2 years from start of online retail.



Read FDI Policy


GOVERNMENT SUPPORT

Digital Payments & Technology

The government is backing technologies such as UPI, RuPay, DigiLocker, eKYC to
help promote digital transactions, increase its adoption in smaller cities, as
well we to drive innovation in this space. In the FY22 Budget, a INR 1,500 crore
scheme was proposed to financially incentivise digital payments.



Digital Infrastructure

Ecommerce is set to benefit from government initiatives to boost rural broadband
penetration within the ambit of Digital India. BharatNet is one such program,
with an outlay of INR ~61000 Crore, aimed to bring broadband connectivity to
India's 2,50,000 Gram Panchayats 



One District One Product Programme

The Government has launched the ODOP programme with the aim of selecting,
branding, and promoting One Product from each District (One District – One
Product) of the country to enable holistic socioeconomic growth across all
regions. 



Consumer Protection (E-Commerce) Rules, 2020

Rules delineate roles and responsibilities for marketplace and sellers, and will
reinforce competition and efficiency within the Indian e-commerce market



E-Commerce Policy [Draft]

A draft policy that aims to create a framework for helping achieve holistic
growth of the e-commerce sector, supporting it along with other initiatives such
as Make in India and Digital India 






MAJOR INVESTORS

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INFRASTRUCTURE MAP


EMERGING CITIES IN INDIA






GALLERY

Sep 24, 2021Prime Minister Narendra Modi meets Vice President Harris on 3-day
visit to US
Sep 23, 2021Launch of the National Single Window System
Sep 27, 2020PM Modi's address to the United Nations General Assembly (Series 2)
dated 26 Sept 2020
Sep 03, 2020Hon'ble CIM Shri Piyush Goyal's message on launch of Global
Innovation Index 2020
Sep 03, 2020PM Modi's keynote address at US-India Strategic Partnership Forum
Jul 16, 2020PM Modi's opening remarks at India-EU Virtual Summit 2020
Previous
Sep 03, 2020Hon'ble CIM Shri Piyush Goyal's message on l…Hon'ble CIM Shri Piyush
Goyal's message on launch of Global Innovation Index 2020
Sep 03, 2020PM Modi's keynote address at US-India Strate…PM Modi's keynote
address at US-India Strategic Partnership Forum
Jul 16, 2020PM Modi's opening remarks at India-EU Virtua…PM Modi's opening
remarks at India-EU Virtual Summit 2020
Sep 24, 2021Prime Minister Narendra Modi meets Vice Pres…Prime Minister Narendra
Modi meets Vice President Harris on 3-day visit to US
Sep 23, 2021Launch of the National Single Window SystemLaunch of the National
Single Window System
Sep 27, 2020PM Modi's address to the United Nations Gene…PM Modi's address to
the United Nations General Assembly (Series 2) dated 26 Sept 2020
Sep 03, 2020Hon'ble CIM Shri Piyush Goyal's message on l…Hon'ble CIM Shri Piyush
Goyal's message on launch of Global Innovation Index 2020
Sep 03, 2020PM Modi's keynote address at US-India Strate…PM Modi's keynote
address at US-India Strategic Partnership Forum
Jul 16, 2020PM Modi's opening remarks at India-EU Virtua…PM Modi's opening
remarks at India-EU Virtual Summit 2020
Sep 24, 2021Prime Minister Narendra Modi meets Vice Pres…Prime Minister Narendra
Modi meets Vice President Harris on 3-day visit to US
Sep 23, 2021Launch of the National Single Window SystemLaunch of the National
Single Window System
Sep 27, 2020PM Modi's address to the United Nations Gene…PM Modi's address to
the United Nations General Assembly (Series 2) dated 26 Sept 2020
Sep 03, 2020Hon'ble CIM Shri Piyush Goyal's message on l…Hon'ble CIM Shri Piyush
Goyal's message on launch of Global Innovation Index 2020
Sep 03, 2020PM Modi's keynote address at US-India Strate…PM Modi's keynote
address at US-India Strategic Partnership Forum
Jul 16, 2020PM Modi's opening remarks at India-EU Virtua…PM Modi's opening
remarks at India-EU Virtual Summit 2020
Next


LATEST NEWS

Dec 19, 2022

ONDC will democratize e-commerce, enable millions of small traders

Oct 28, 2022

ONDC onboards Shiprocket to expand to intercity deliveries

Oct 11, 2022

India's e-retail market to increase to $150 bn-$170 bn by 2027: Report

Sep 14, 2022

Retail sales in malls set to touch $39 bn by FY28

Sep 05, 2022

India becomes the fifth-largest economy in the world

VIEW ALL


Discover Retail & E-Commerce


RESOURCES

Previous

Feb

02

2022

Report
Economic Survey 2021-22


Feb

01

2022

Report
BUDGET 2022-2023


Sep

21

2021

Report
Global Innovation Index 2021


Jan

29

2021

Report
Economic Survey 2020-21: Volume 1


Jan

29

2021

Report
Economic Survey 2020-21: Volume 2


Nov

19

2020

Regulations
Standard Operating Procedure (SOP) for Processing…


Oct

31

2020

FDI Policy 2020
DPIIT released the 'Consolidated FDI Policy' …


Sep

14

2020

Portal
India Industrial Land Bank


Jul

09

2020

Report
Global Value Chains Sourcing & Retail in India’s …


Jun

30

2020

Brochure
Retail & E-commerce Sector

Next


TEAM ARTICLES

ASEAN-India
Jul 14, 2021
ASEAN and India: Charting the New Asian Century

For over half a century, the Association of Southeast…

By:
Strategic Investment Research Unit (SIRU)
E-commerce
Jun 24, 2021
Proposed Amendments to Consumer Protection (E-Commerce) Rules, 2020

On Monday, June 21, 2021, the Department of Consumer…

By:
Rajat YadavTaksh Sharma
Indian retail sector
Apr 01, 2021
Modernization of Kirana Stores in India

Over the last ten years, the retail market in India has…

By:
Rohan Goyal
VIEW ALL
FAQ

FAQS

Can an SBRT entity commence e-commerce operations?

Subject to the conditions of SBRT under the FDI policy (link:), a single brand
retail trading entity operating through brick and mortar stores, is permitted to
undertake retail trading through e- commerce. Further, as per policy, retail
trading through e-commerce can also be undertaken prior to opening of brick &
mortar stores, subject to the condition that the entity open brick and mortar
stores within 2 years from date of start of online retail

For any further queries, please write to us at retail@investindia.org.in

Was it helpful?

YesNo
What is a marketplace and inventory based model of e-commerce?

"1) Marketplace based model of e-commerce means providing an information
technology platform by an e-commerce entity on a digital & electronic network to
act as a facilitator between the buyer and seller. 
2) Inventory based model of e-commerce means an e-commerce activity where
inventory of goods and services is owned by e-commerce entity and is sold to the
consumers directly.

For more information, click here 

For any further queries, please write to us at retail@investindia.org.in"

Was it helpful?

YesNo
Is FDI allowed for inventory based model of e-commerce?

"No, FDI is not permitted for inventory based model of e-commerce.

For any further queries, please write to us at retail@investindia.org.in"

Was it helpful?

YesNo
Does India have an e-commerce policy?

"A draft e-commerce policy was prepared and put up in the public domain on
February 23, 2019 for comments/suggestions. Comments from over 120 stakeholders
(companies, Industry associations, think tanks, foreign governments) have since
been received. The Govt. is currently working on finalising the policy. Click
here for the draft policy. 

For any further queries, please write to us at retail@investindia.org.in"

Was it helpful?

YesNo
What is deemed inventory ownership by a marketplace under the FDI Policy on
E-Commerce?

As per the FDI Policy, E-Commerce marketplace is not supposed to exercise
control or ownership of the inventory. Inventory is deemed to be controlled by
the marketplace if more than 25% of purchases of a vendor on the marketplace are
purchased from the marketplace entity or its group companies. 

For any further queries, please write to us at retail@investindia.org.in

Was it helpful?

YesNo


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