A report released by Goldman Sachs predicts that Indian eretail market is expected to reach $99 billion in size while online commerce penetration will improve more than double to almost 11%. The growth in this market is expected to surpass mature markets like the US, China, the UK, Europe and Brazil, according to Goldman Sachs’s review of e-commerce markets globally.
E-commerce is expected to register a growth of over 18% for the current year but estimates for 2021 and 2022 show a year-on-year growth rate of over 33% and 28% respectively. To compare, growth rates for the same period for the US are 17% and 19%, while it is nearly 11% for China in the next two years. To be sure, the market size base is bigger in both the US and China along with higher penetration of the total retail market.
COVID pandemic has accelerated both growth and penetration of e-commerce further in these markets, including in India.