India E-commerce Market Likely To Reach USD 120 billion By 2026: FICCI Report

8 Jul 2022 , 11:54 AM

As per the FICCI-Anarock report, the market size of retail in India is estimated to grow to more than USD 1. 8 trillion by 2030 from USD 705 billion in 2020. On the other hand, the e-commerce market in India is likely to reach USD 120 billion by 2026 from USD 38 billion in 2021. This exponential rise in retail and e-commerce businesses in India is likely to fuel the growth of the warehousing and logistics sector in India. Additionally, COVID-19 has accelerated the growth of e-commerce across India. Online shopping has increased significantly in Tier-II and Tier-III cities as well due to the easy availability of the internet on cheaper tariffs and restrictions on physical movement during the time of the pandemic. This trend has provided an impetus to the warehousing and logistics sector beyond Tier-I cities. The constant push and ambitions for infrastructure development and policy support provided by the government may ride the next wave of growth for the industrial, warehousing, and logistics sectors in India. The government has introduced a slew of measures such as the Gati Shakti Program, GST, National Manufacturing Policy, Self-Reliant Campaign, Land Reforms, and Tax Reforms to provide necessary infrastructure and policy support to boost the manufacturing sector across the country. Additionally, COVID-19- led lockdowns across the globe highlighted the need for China plus one strategy for manufacturing as the supply chain for various companies was disrupted at the time of forced lockdowns in China. These companies are now looking to shift their base from China or are keen to open a new manufacturing facility in other countries and India is a top contender. Robust infrastructure and a liberal policy environment may entice these companies to set up their bases in India which may drive the next wave of industrialization in India. The warehousing and logistics sector is as important as manufacturing. Reasonably priced storage and transportation is the success mantra for many businesses. Considering the sectors importance, the government has timely introduced various reforms such as GST, warehousing policy, and infrastructure status to the logistics sector to provide impetus to the sector. National Logistics Policy is in the draft stage and expected to change the face of the logistics sector in India. Powered by Capital Market – Live News