According to a recent analysis by Statista performed on India's current e-commerce trends, India’s total market size is expected to almost triple in the next five years. From a total value of just over a trillion rupees in 2014, the growth of online industries located within India has been one of the most significant and consistent in the world. Now valued at $64 billion, this growth is owed primarily to the software industry, as well as direct and indirect involvement by India’s increasingly online population.
Mapping India’s Software Industry
According to this article by Pankaj Jalote and Pari Natarajan of CACM, India’s online software growth can be separated into three stages. The first of these was the growth of exporting firms, pre-2000. These firms were dedicated to providing software solutions to international clients. Taking on issues like Y2K proved viability here, and this would drive investment.
Around 2000 to 2010, this age mapped the rise of research and development and the involvement of international businesses. Together, these and IT management businesses would create global confidence and respect, leading to the new era.
The newest age of India’s software industry is the current state of high-flexibility and creativity. Born from the early experience and skill, the age has been possible through a larger market than ever before, and more personal interest among all of India’s internet users.
Contributions to India's software industry, and the websites and services formed through developer expertise, have only been possible through the increased interconnectivity of greater internet access. In 2015, a reported 260 million in India had access to an internet connection. As of 2020, this number exceeded 564 million, with a growth of 40 million users over the previous year alone.
Such involvement has had two major effects on e-commerce growth, in that it has encouraged more involvement at both the supply and demand ends of the equation. With more people online, the call for more websites to cater to the new influx of Indian users grew. While much of this has been with national businesses, such as with services like Flipkart and IndiaMart, the contributions of international businesses have also been majorly influential.
Online casinos, as an example, are of a constant appeal to Indian adults. As such, websites like LeoVegas,which appeal to potential customers through games like jackpot slots, have been important in drawing users online. Once users are there and become acquainted with the ability to connect effortlessly through mobile, they not only stay but drive business like online casinos to develop their features and make themselves even more appealing, drawing in further users - and so on.
With demand for all sorts of goods and services requiring fulfillment, savvy e-commerce developments made rapid strides in capitalizing on what was is still a primed market. Far from reaching a plateau, this evolution is expected to continue in e-commerce until at least the mid-2020s.
With the most important aspects of Indian e-commerce showing no signs of slowing down, it is difficult to predict an eventual resting point. What is certain, is that growing demand both within and globally, combined with higher supply from an interested and creative youth, means that Indian e-commerce is still far from hitting its peak. As the second-largest single-market in the world, Indian e-commerce industries will undoubtedly play a key part in our country's economic future.
Disclaimer: Opinions expressed in this article are the author's personal opinions and do not reflect the views of Connected to India. The management of the company does not assume any responsibility or liability for the article.