Cashfree Payment Gateway: India's e-commerce market to reach $60bn by 2023

Recently, Bain & Company conducted a comprehensive study of the Indian e-commerce industry and published a report on the state of the Indian e-commerce market to 2023. Despite the global economic headwinds, the report reveals that the Indian e-commerce market continues to show positive growth across multiple metrics, outperforming mature markets in Europe and the US.

Specifically, although the Indian e-commerce industry started later than other countries, its large population base and improving socio-economic environment provide a solid and stable foundation for continued growth.

The report reveals that the number of e-commerce consumers in India is expected to reach 230 million to 250 million by 2023. This number has grown by about 120 million in the last three years. Moreover, the middle and upper income groups in India, which are the main drivers of online spending, are also growing. By 2028, it is expected that there will be 70 million upper-middle-income households in India, who will contribute at least $85% of total e-commerce sales.

Undoubtedly, the continued unleashing of consumer spending is fuelling the growth of online retail in India. Bain & Company forecasts that the Indian e-commerce market size will maintain a growth rate of 17% to 20% to reach $60bn in 2023, despite a slowdown in market growth due to the recession. Moreover, over the next five years, the market is expected to grow by 23% to 25% as e-commerce penetration increases. in other words, by 2028, the Indian e-commerce market is expected to exceed $160 billion in sales.