Owing to its large population, India has always been an attractive ecommerce market, even if a relatively small percentage of its residents have access to the internet or adequate income. Only 3% of the population has a credit card, according to the World Bank.<\/p>\n
But ecommerce is now surging in India. Covid-19 has devasted the country in the past year with high numbers of hospitalizations and deaths. Consumers stayed home and learned to shop online.<\/p>\n
Statista estimates India’s 2021 internet penetration rate at 45%. With a population of 1.4 billion, that’s 630 million internet users \u2014 a massive number, 45 million more than in 2020.<\/p>\n
India\u2019s population is heavily dependent on mobile devices, with 96% of internet users between the ages of 16 and 64 owning a smartphone. About 79% of the population has a mobile connection, according to research firm GSMA Intelligence. Conversely, only 56% own a desktop or laptop computer, according to Global Web Index, a data provider. India is one of the least expensive countries for mobile internet access. Indians who have internet access increasingly use mobile payment services<\/a> such as Samsung Pay for ecommerce purchases.<\/p>\n The largest category for online spending is travel, rideshares, and accommodations, with expenditures of $35.2 billion in 2020, although those purchases fell 54% between 2020 and 2021 due to pandemic, while food and personal care grew by 55%. Electronics and physical media \u2014 the largest category for physical goods \u2014 collected $14.6 billion in revenue in 2020.<\/p>\n Retail ecommerce sales in India should reach $66.76 billion in 2021, up by 27% from 2020, according to eMarketer.<\/p>\nSales<\/h3>\n