From its humble beginnings more than a decade ago, the Indian internet industry has come a long way. eCommerce in India today accounts for nearly 2% of the country’s GDP. The industry is slated to become USD 100 Billion in size by 2015. India happens to be the 12th largest ecommerce economy in the world and amongst the top 5-7 fastest growing ones.
eCommerce has benefited both Indian businesses and consumers alike. The consumer benefit stems from – increased choice, transparency, convenience & price. While businesses have also embraced this relatively new avenue for selling their wares resulting in incremental revenue increases upwards of 20%. As an employment generation channel, the industry is set to create 50,000 new jobs over the next 18-24 months. While these are direct employment avenues, the indirect jobs created would be a 4x multiple, more than 2,00,000 in number.
The industry has also helped a lot of traditional, localized SMEs grow and scale. A case in point is Stayzilla which is India’s largest marketplace for “stays” and most of our 15,000+ stay options across 1000+ cities in India happen to be unique. Most of these properties would not have had access to a pan-Indian consumer base if not for the medium of the internet delivered via a player such as Stayzilla. There are many more such examples littered across our economy.
All of these achievements are in-spite of just 10% of the country’s population being online and the multitude of constraints the industry works within – Low credit card penetration, logistical issues due to nascent infrastructure development and many others. With ongoing efforts from the governing bodies and the players involved to alleviate these issues, the future does look bright for this sector.