Emergence & Impact of

E-commerce on Indian Economy

E-commerce Introduction

Sale or Purchase of goods and services conducted over

devices connected through internet.

Transactions can be between businesses, households,

individuals, governments and other public or private
organizations.

Goods and services sourced from any place and

delivered at desired place.

Classification of E-commerce

Consumer to Consumer C2C

Business to Consumer B2C

Business to Business B2B

Evolution of E-commerce in
INDIA.
> 1991 Economic Liberalization

> 1995 - Introduction of INTERNET in India

> Harbinger of E-commerce Emergence of B2B, job searches and matrimonial portals
> The Next Big Players Travel sector Indian Railway Catering and Tourism
Corporation
(IRCTC)
> 2005 Volume
Online Retail, Social Networking, Tourism Agencies , E-tailing

E-Commerce Today
E-commerce in India is a ~USD11b market, and is estimated to reach U SD20b by 2015,
growing at a CAGR of ~ 37% over 2013-15.Google estimates this to further propel to
USD70b by 2020 (30% CAGR), of which e-tailing (online shopping of physical goods),
which is only ~USD2b in size today, will grow to become a USD45b industry.

E-Commerce and Indias GDP

E-commerce industry in Indiareached a value ofINR 81,525 crore
(US$13.5 billion) in 2014 and will Cross $16 Billion in 2015.
100 percent FDI in business-to-business (B2B) e-commerce.
51% FDI in multi-brand retail.
213 million mobile internet users by June 2015.
Beating out China in coming years.

India: Growth Prospect

Regulatory factors- FDI policies.

Supply side factors- rapid infrastructural growth and online services.

Demand side factors:

Rising disposable income
Increasing urbanization
Booming Gen-Y population

Economics to E-commerce
Increase Aggregate supply and demand.

More efficient pricing of supplies.

Lower inventory costs.

Higher speed and lower cost of nearly all

communications.

Lower distribution costs

th-holding Factors in E-Commerce

The answers to perennial business

questions such as who, where,
what is little more challenging to
answer in the virtual world where
information, and relations are sold as
services.

- Privacy
- Child Protection
- Data Protection
- Fraud Prevention

Gove
rnan
ce
Issue
s

- Intellectual Property
Rights Issue
- Jurisdiction Issues

Busin
ess
Conc
erns

- Contracting parties
Verification
- Identifying
applicable regulations

Cons
umer
Prote
ction
Issue
s

Indian Ecommerce: Growing under

constraints

FDI in B2C: Next Logical Step

Restriction on FDI

Payments and transactions

Compliance framework

Key Drivers for E-commerce

Middleclass urban and semi-urban consumer.

Favourable demographic profile.

Increasing internet penetration, Increasing smartphone usage.

Opening up of Foreign Direct Investment (FDI)

THANK YOU !