India Digital Commerce Market

India Digital Commerce Market Size and Share Forecast Outlook (2025 to 2035)

Digital commerce is becoming the future face of Indian E-commerce with growth at an all-time high from internet penetration to adoption of the smartphones, government initiatives galore, it would see a leap from USD 160 billion in 2025 to about USD 640 billion by 2035. It will also showcase a CAGR of 15.7% in this period.

E-commerce in India is the massive canvas that houses online retail e-commerce, B2B platforms, DTC brands, and subscription-based models. So there is going to be a revolution in digital commerce led by new-age payment innovations, growing online dependency, and increasing middle class consumer spending.

Key growth drivers include:

• Rising Internet Access: Over 900 million internet users by 2030.
• Smartphones Affordability: Over 75% of online purchases via mobile devices
• Indian Government Plans: Initiatives like Digital India, UPI, and ONDC (Open Network for Digital Commerce) promote growth.

India’s digital commerce market plays a key role in modernizing retail, increasing accessibility, and supporting small and medium enterprises (SMEs).

India Digital Commerce Market Assessment and Growth Drivers

Attributes	Description
Historical Size, 2024	USD 150 billion
Estimated Size, 2025	USD 160 billion
Projected Size, 2035	USD 640 billion
CAGR (2025 to 2035)	15.7%

Thus, the pandemic and rapid use of e-commerce increased the annual growth of the Indian e-commerce market by 17% from 2020 to 2024. Major ecosystem players like Flipkart, Amazon India, and Reliance JioMart are making their ecosystems more robust. Moreover, regional platforms such as Meesho and Snapdeal expanded to Tier 2 and Tier 3 cities

From 2025 to 2035, growth will focus on:

• Mobile Commerce: which would achieve momentum for online purchases and, in turn, would replace the others gradually.
• Digital Payment Systems: The UPI driven by transactions
• Rural Penetration: Spread of E-commerce in Rural Areas contributing to more than 50% market share by 2030.

Key Industry Highlights in India’s E-Retail and Marketplace Landscape

Mobile Commerce Drives Growth

Growth in India's mobile commerce sector witnesses a rampant growth due to increasingly affordable smartphones and ridiculously cheap data plans that make online shopping increasingly accessible.

UPI Revolutionizes Payments

This includes the Unified Payment Interface of India, at over 10 billion transactions this month in 2024. Seamless, secure UPI is confidence for people to shop online, just as they would be in stores.

Tier 2 and Tier 3 Cities Lead Growth

Other ecommerce sites, like Meesho and Snapdeal, are targeting smaller cities in India, which reflect more growth compared to metropolitan cities. Affordable products, interfaces in local languages, and options for cash-on-delivery raise adoptions.

B2B Commerce Expands with ONDC

Open Network for Digital Commerce democratizes e-commerce, thus letting SMEs and local businesses in the digital marketplace. By 2030, India's B2B commerce market is likely to cross about USD 360 billion.

Focus on Sustainability

Indian e-commerce companies are becoming environmentally friendly through lesser packaging, electric vehicles to deliver the goods, and selling green products on their portal.

Category-Wise Insights Across B2C, B2B, and D2C Channels

Retail E-Commerce Leads the Market

The retail e-commerce is one of the dominant forms of digital commerce in India, with major drivers in fashion, electronics, and groceries.

Segment	Retail E-Commerce
Value Share (2025)	60%
Growth Driver	Convenience and competitive pricing

B2B Digital Commerce Grows with ONDC

The B2B sector in India modernizes supply chains and builds cross-border trade on platforms such as Udaan and an initiative called ONDC.

Segment	B2B Digital Commerce
CAGR (2025 to 2035)	18%
Growth Driver	SME participation and real-time inventory management

Subscription-Based Models Gain Popularity

India’s subscription economy grows with platforms like Tata Play Binge, Zomato Gold, and Grofers Plus offering recurring benefits.

Segment	Subscription Services
Value Share (2025)	15.7%
Growth Driver	Convenience and recurring savings

Competition Outlook Among E-Commerce Giants and Retail Tech Innovators

Global giants compete with domestic leaders and regional disruptors for market share in the Indian digital commerce market.

Key Players

• Amazon India: Focus on driving the penetration of Prime membership and offering regional language options. Fast deliveries- same day/one day-two day.
• Flipkart: Big Billion Days sales leveraging tiered pricing and fintech solutions.
• Reliance JioMart: JioMart integrates offline Kirana stores into its digital platform to get the grocery sale.

Emerging Startups Disrupting India’s Digital Commerce Ecosystem

• Meesho: Targets Tier 2 and Tier 3 cities with affordable goods and a reseller model.
• Udaan: Pioneers B2B e-commerce with a focus on SMEs and wholesalers.
• Zomato: Expands into subscription-based models like Zomato Gold and Zomato Everyday for hyperlocal food delivery.

Regional Specialists Catering to Tier 2 and Tier 3 Consumer Bases

• Meesho: selling low-priced commodities to Tier 2 and Tier 3 cities and utilizing reseller model to sell goods
• Udaan: pioneers B2B e-commerce with SMEs, wholesaler-focused operation
• Zomato: subscription-based businesses like Zomato Gold and Zomato Everyday for hyper-local food delivery

Recent Industry Updates on Policy, Payments, and Logistics

• In November 2024: Flipkart introduced AI-driven search and recommendation engines to enhance customer experiences.
• In October 2024: Amazon India expanded its regional language support to 15 languages, boosting accessibility.
• In September 2024: Reliance added more than one million local stores to its digital platform.
• In August 2024: Meesho launched a zero-commission policy for sellers, attracting more SMEs.
• In July 2024: The BigBasket (Tata enterprises) began piloting drone deliveries in Bengaluru for faster order fulfilment.

Top Segments Studied in the India Digital Commerce Market Report

By Retail E-Commerce Leads:

The retail e-commerce is one of the dominant forms of digital commerce in India, with major drivers in fashion, electronics, and groceries.

By B2B Digital Commerce Grows with ONDC:

The B2B sector in India modernizes supply chains and builds cross-border trade on platforms such as Udaan and an initiative called ONDC.

By Subscription-Based Models Gain Popularity:

India’s subscription economy grows with platforms like Tata Play Binge, Zomato Gold, and Grofers Plus offering recurring benefits.