Indian e-commerce to surpass US, become second largest by 2034

Shiprocket X, a cross-border shipping product of e-commerce aggregator Shiprocket, recently published its survey report titled “The State of Cross-Border Trade.”

The survey revealed some interesting global insights, along with how India ranked 9th in global cross-border growth.

India's total merchandise exports continue to cross the USD 100 billion mark, for the second consecutive quarter in a row, amounting to USD 105.8 billion, during Q3 (October-December) of 2021-22. Some key factors for this growth include a massive post-pandemic push that made retailers shift from mere brick-and-mortar establishments and embrace e-commerce both locally and globally. Other catalysts included the active participation of consumers in shopping with global retailers.

Simplified cross-border trade has been a top priority for the Indian government as it represents 20% of global e-commerce and is a key determinant of the level of EoDB (ease of doing business) in the country. The government of India has actively provided the necessary impetus for the growth of the Indian export sector, which has powered a total export revenue of USD 417 billion in FY 22. 15 additional clusters pan-India clocked a surge in merchandise exports, with Gujarat contributing the highest to India’s overall exports, followed by Rajasthan and Delhi. These statistics point towards a strong demand indication for cross-border trade of Indian products.Akshay Ghulati, co-founder, strategy & global expansion, Shiprocket said, “Indian MSMEs are the powerhouse of the country with a significant contribution to our GDP. With the unstoppable growth of e-commerce in India, we are on track to become the second-largest e-commerce industry in the world, making it easier than ever for our small businesses to access global markets. We have witnessed firsthand, the tremendous potential of Indian MSMEs in driving cross-border trade, and hence, at the core of Shiprocket lies the passion to empower the merchants of BHARAT. This survey is a step forward in that direction and helps us decode the challenges and the expansion opportunities for Indian e-commerce brands”

With the increasing acceptability of Indian products in the international retail market, MSME exports are playing a crucial role in powering 40% of India's overall exports, contributing to approx. 6.22% of the country’s GDP. The transformational changes in consumer buying behaviours have also played a key role in the growing opportunity in the global e-commerce trade. With around 63.4% million units spread across the geographical expanse of India, MSME exports are going to play the role of a catalyst in restoring the strength of the Indian economy. As per the industry body FISME in a study paper has said that e-commerce export potential is in the range of $200 to $300 billion by 2030.