India’s e-commerce market to surpass $200 billion in 2025
23 October 2025, Mumbai
Fueled by consumers' growing preference for online shopping and their increasing confidence in digital payment methods, India’s e-commerce market is poised to surpass $200 billion in 2025.
A new forecast by GlobalData projects, the market will grow at a rate of 12.5 per cent in 2025, reaching Rs 17.7 trillion (approximately $211.6 billion). The market is expected to achieve a Compound Annual Growth Rate (CAGR) of 11.5 per cent between 2025-29, potentially expanding to Rs 27.3 trillion ($326.7 billion) by 2029.
The rapid expansion is being powered by a combination of technological, economic, and governmental support including widespread digital integration, coupled with increasing internet and smartphone access, which is bringing more users online.
The availability and adoption of secure online payment tools, including the rise of AI-driven payment options, are bolstering consumer confidence.
The sustained popularity of major annual sales events, such as Flipkart’s Big Billion Days, Myntra’s Big Fashion Festival, and Amazon’s Great Indian Festival, continues to drive sales volume.
Favorable government initiatives, including GST rate cuts implemented in September for sectors like fashion and wellness, are encouraging spending. Large retailers like Reliance Retail and Flipkart have actively promoted these discounts through campaigns like the 'GST Bachat Utsav.'
According to Poornima Chinta, Senior Banking and Payments Analyst, GlobalData, the market's upward momentum shows ‘no signs of waning.’ She notes, India's young, upwardly mobile population, along with a supportive regulatory framework and technological leaps, are fundamentally changing how Indians shop, which is both generating new opportunities and attracting fresh investment.
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