The e-commerce market in India is expected to grow 37 percent to reach $20 billion by next year on the back of growing internet population and increased online shoppers, according to a report by Motilal Oswal Securities on e-commerce.
"E-commerce in India is a $11 billion market, and is estimated to reach $20 billion by 2015, growing at a CAGR of 37 percent over 2013-15," Motilal Oswal Securities said in its report.
The research firm reported that this growth is attributed to the increasing number of internet users, online shopper, fillip in the pre-shopper transaction value and the traction of a significant number of investors in this domain. Online travel portals are considered as the growth drivers of eCommerce market and in the near future, e-tailing is expected to drive the growth.
“Today, 71 percent of the e-commerce market in India comes from the online travel business, whereas e-tailing constitutes 16 percent of the market. Going forward, e-tailing will be the biggest growth driver, with expected CAGR of over 60 percent to $7 billion in 2016 from $1.7 billion in 2013. Within e-tailing, fashion is likely to be the driving segment," the report said.
Discounts on online sales is also considered as one of the major booster in the w-commerce industry, as reported by the research firm.