India to surpass US to have the second largest online shopper base by 2024

Tags: Economy/Finance

According to a report ‘How India shop online 2022 ‘published by the American consultancy firm Bain and Co.  and Flipkart, India is likely to overtake the United States within 1-2 year  and will have the second largest online shopper base in the world after China .

India currently has the third-largest shopper base globally, with 180–190 million online shoppers in 2021 after China and the United States and it is likely to grow to 400–450 million by 2027. 

According to the report, the Indian e-retail market rose to approximately $40 billion in 2021 and is slated to reach $50 billion in 2022. 

It expects India’s e-retail market to increase to $150–$170 billion by 2027. This implies 25%–30% annual growth and doubling of market penetration to 9%–10% over the next five years.

The report defines ‘e-retail’ as purchase of products online and does not include services, games and entertainment. 

The report expects a growth rate of 25–30% annual growth in the next five years.

The report says that fashion, beauty, and grocery or general merchandise, including personal care, will replace mobiles, electronics and large appliances as the leading categories by 2027.