Impact of e commerce on indian economy
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E-Commerce is a growing sector in India. Just like the growth of IT industry in India through the 1990s, the 2010s will be remembered for the growth in the E-Commerce industry. In its present state the contribution of E-Commerce to GDP is around 0.2% which is expected to grow 15 times to around 2.5% by 2030.
The impact is so huge that the present wave of de-monetisation could have not been thought if E-Commerce did not exist. E-Commerce to a large extent helped absorb its shock as well as gained the maximum out of it as well.

By 2030 the contribution to GDP by E-Commerce is expected to reach to around 300 Billion Dollars which is around 20 Billion Dollars in its present state.

After the initial wave of B2C E-Commerce, the B2B sector is gaining a lot of traction. 95% of the business in the B2B sector is still unroganised and E-Commerce will help organise by use of technology and other support functions.
The impact of E-Commerce industry are still in very nascent stage but are visible. The impact at the moment can be seen in the following sectors:-
Technology- One of the major drivers of technology will be E-Commerce industry and vice versa. We are seeing new age technological solutions(AI/Machine Learning) being taken up to solve the business problems to bring commerce to everyone digitally. This is seen in both B2C and B2B sector. Investment into technology sector is happening to drive growth in the E-Commerce domain.Logistics- Logistics industry is both a bottleneck and a driver for e-commerce industry. For the same we see how last mile and inter-city logistics solutions have come up to digitally connect the different stakeholders across the country. The Uber model of moving passengers is implemented in some form or the other in the logistic sector. The growth of E-Commerce will drive innovation in the logistic sector to make the products available to the end user.Travel- At the moment 70% of the contribution to E-Commerce comes from the travel sector which includes the online ticket bookings to other travel arrangements. This has made the market competitive by bringing all players on the same platform and has also given consumer more options. Travel industry will be earliest adopters to become completely digitised and that is thanks to E-Commerce.Education- One of the industries to have the most profound impact of E-Commerce is the education. The ability of E-Commerce to provide quality education to everyone is immense. India will have one of the biggest set of youth population and hence the scope for education sector to be the biggest achievers because of E-Commerce is sure.Etail- The flag bearers of the E-commerce wave have been the various E-Retail commerce platforms. Etail sector is projected to contribute to around 3% of the total Retail sells by 2020 and is at present around 1%. This wave is seen in both B2C and C2C model and is bound to grow further. This is not only for goods but also has captured the food sector.Other Industries- The way of working in the Real Estate sector is already seeing the change because of the E-Commerce industry. This will change further with all property related transactions coming online and getting closed online as well. Banking sector is benefiting as well with reduced operations cost of online transactions. E-Commerce in health care has brought health related solutions to the urban India and will further penetrate deep into Tier I and Tier II cities.Support Industries- There are various support industries which have developed because of E-Commerce. These are digital advertising, analytics, payment gateways etc.. These will become billion dollars sectors as E-Commerce grows exponentially.
Besides the impact to these industries, E-Commerce is helping make the market more competitive, driving better customer experience and driving accessibility of goods to all. E-Commerce is also bringing transactions online which makes the system more transparent and to an extent may further drive technological adoption. This will also help in driving corruption levels down with everything coming online. The impact are profound and will evolve with time.
The impact is so huge that the present wave of de-monetisation could have not been thought if E-Commerce did not exist. E-Commerce to a large extent helped absorb its shock as well as gained the maximum out of it as well.

By 2030 the contribution to GDP by E-Commerce is expected to reach to around 300 Billion Dollars which is around 20 Billion Dollars in its present state.

After the initial wave of B2C E-Commerce, the B2B sector is gaining a lot of traction. 95% of the business in the B2B sector is still unroganised and E-Commerce will help organise by use of technology and other support functions.
The impact of E-Commerce industry are still in very nascent stage but are visible. The impact at the moment can be seen in the following sectors:-
Technology- One of the major drivers of technology will be E-Commerce industry and vice versa. We are seeing new age technological solutions(AI/Machine Learning) being taken up to solve the business problems to bring commerce to everyone digitally. This is seen in both B2C and B2B sector. Investment into technology sector is happening to drive growth in the E-Commerce domain.Logistics- Logistics industry is both a bottleneck and a driver for e-commerce industry. For the same we see how last mile and inter-city logistics solutions have come up to digitally connect the different stakeholders across the country. The Uber model of moving passengers is implemented in some form or the other in the logistic sector. The growth of E-Commerce will drive innovation in the logistic sector to make the products available to the end user.Travel- At the moment 70% of the contribution to E-Commerce comes from the travel sector which includes the online ticket bookings to other travel arrangements. This has made the market competitive by bringing all players on the same platform and has also given consumer more options. Travel industry will be earliest adopters to become completely digitised and that is thanks to E-Commerce.Education- One of the industries to have the most profound impact of E-Commerce is the education. The ability of E-Commerce to provide quality education to everyone is immense. India will have one of the biggest set of youth population and hence the scope for education sector to be the biggest achievers because of E-Commerce is sure.Etail- The flag bearers of the E-commerce wave have been the various E-Retail commerce platforms. Etail sector is projected to contribute to around 3% of the total Retail sells by 2020 and is at present around 1%. This wave is seen in both B2C and C2C model and is bound to grow further. This is not only for goods but also has captured the food sector.Other Industries- The way of working in the Real Estate sector is already seeing the change because of the E-Commerce industry. This will change further with all property related transactions coming online and getting closed online as well. Banking sector is benefiting as well with reduced operations cost of online transactions. E-Commerce in health care has brought health related solutions to the urban India and will further penetrate deep into Tier I and Tier II cities.Support Industries- There are various support industries which have developed because of E-Commerce. These are digital advertising, analytics, payment gateways etc.. These will become billion dollars sectors as E-Commerce grows exponentially.
Besides the impact to these industries, E-Commerce is helping make the market more competitive, driving better customer experience and driving accessibility of goods to all. E-Commerce is also bringing transactions online which makes the system more transparent and to an extent may further drive technological adoption. This will also help in driving corruption levels down with everything coming online. The impact are profound and will evolve with time.
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