AI, AR-VR to power India’s e-commerce growth to $250 bn by 2030

Artificial intelligence and immersive technologies such as augmented and virtual reality are set to reshape India’s e-commerce landscape fundamentally, driving both consumer engagement and profitability as the market scales to $250 billion by 2030, according to a report by Google and Deloitte published on Wednesday.

The report highlights that AI is emerging as a core engine of growth, transforming how consumers discover, evaluate and purchase products online. Rather than following a linear shopping journey, users are increasingly engaging in conversational, AI-led experiences where browsing, comparison and decision-making happen in real time. New tools embedded across search and platforms—such as AI-powered shopping assistants and conversational interfaces—are enabling users to move seamlessly from intent to purchase.

“This is a pivotal moment for Indian commerce driven by a fundamental shift in how India shops,” said Managing Director - Connected Commerce, Google India. She noted that AI is helping deliver more personalised, intuitive experiences, while also enabling businesses to understand better and serve evolving consumer needs.

Industry experts say this shift is giving rise to “generative commerce”, where AI systems can interpret user intent and curate or even create product options instantly. Anand Ramanathan, Partner & Consumer Industry Leader - South Asia, Deloitte, said the market is moving towards “algorithmic intimacy”, where demand is not only predicted but actively shaped in real time. This is expected to significantly boost conversion rates and customer lifetime value, while also improving operational efficiency across inventory and supply chains.

Alongside AI, immersive technologies such as augmented reality (AR) and virtual try-on tools are redefining digital shopping experiences by bridging the gap between online and physical retail. The report notes that one in three Indian shoppers now prefer virtual trials, with nearly half of these users significantly increasing their online spend after using such features.

These technologies are enabling a more interactive and confidence-driven purchase journey, particularly in categories like fashion, beauty and home décor, where visualisation plays a critical role. Retailers are increasingly integrating AR features that allow consumers to “experience” products before buying, reducing return rates and improving satisfaction.

The convergence of AI and immersive technologies is also reshaping the role of physical stores, which are evolving into experience centres rather than mere inventory hubs. As many as 72% of consumers are willing to pay a premium for tech-enabled experiences, while a growing number expect a unified shopping journey where carts, preferences and recommendations seamlessly transition across devices and physical locations.

Together, AI and AR/VR are not only enhancing front-end consumer experiences but also driving back-end efficiencies, enabling e-commerce players to deliver personalised, high-touch interactions at scale—positioning technology as the central lever in the next phase of India’s digital commerce growth.