India’s digital economy to reach $800 bn by 2030, Covid-19 drives demand: RedSeer

India’s digital economy to reach $800 bn by 2030, Covid-19 drives demand: RedSeer
Photo Credit: 123RF.com
1 Jul, 2021

India’s consumer digital economy, which was pegged at $85-90 billion in 2020, is expected to become a $800 billion market by 2030, according to homegrown consulting firm RedSeer. 

The consulting firm said that India’s online retail is set to become the world’s third largest by scale over the next decade, with an annual gross merchandise value (GMV) of $355 billion by 2030, up from $55 billion this year. 

According to the report, 88% of the online shoppers that will be added between 2020-2030 will be from tier 2 cities, with about $7 billion in cumulative incremental online retail transactions.

“Over the last one decade, entrepreneurs have dedicated themselves to solve for the specific needs and pain areas of Indian consumers. Today, 50% + customers say they use online services because of convenience. Few years back almost 70%  used to say the key reason is discounting but  with the hit of Covid, digital services have undoubtedly served the customers very well, which is evident in high customer satisfaction and customers willingness to keep using the digital as a key channel to fulfill their needs,” Anil Kumar, founder and CEO of RedSeer, said in a statement,

Additionally, kiranas are expected to achieve approximately achieve a $1.5 trillion sales by 2030, mainly driven by digital adoption and B2B offerings.   

The report also highlights that new-age logistics players have created an opportunity of 500,000 employment for gig workers in 2020.  

According to RedSeer research, shared mobility saw a sharp decline due to the second wave led lockdowns in the last two months. Although the autos segment recovered the fastest, the overall sector merely clocked 18 million rides, a drop from 113 million rides in January last year. However, while the shared mobility is dipping, personal mobility space is riding on a wave of strong traction seen since last year. https://www.techcircle.in/2021/05/04/mobility-sector-has-recovered-69-since-pandemic-lockdown-redseer  

Online content sector has also gained momentum due to the pandemic-related restrictions.  According to the report, active digital content users now coming from tier two cities, with the top two categories being Facebook-owned WhatsApp followed by news aggregators.