E-commerce to grow over four times to $150 bn by 2022: Nasscom & PwC report
The country’s e-commerce sector will grow over four times to $150 billion (Rs 10.64 trillion) by 2022, from $36 billion (Rs 2.48 trillion) last year, thanks to a favourable policy environment, ballooning middle class, and expanding base of internet users. The estimate was brought out by a report of Nasscom (National Association of Software and Services Companies) and accountant and consultant PricewaterhouseCoopers.
The report said that the current market will grow at an annual rate of 25% from 2018-22, with online financial services being one of the fastest-growing sectors, clocking 59% compound annual growth rate. However, online retail and online travel will continue to dominate, making up over 90% of the market.
E-commerce growth will be spurred, among others, by India’s middle class, which is expected to swell to 540 million by 2022 from 380 million in 2017, showed the report.
The growth will also be driven by new internet users. The number of internet users is expected to grow to over 850 million by 2020, with 60% internet penetration in the country. Of these, 150 million will transact online and a third will be high-frequency users, said the report.
The new demographic of the next 100 million users will be markedly different, preferring voice to text-based browsing and choosing vernacular language and cash-on-delivery.