It may reach $326.7b by 2029.
India’s e-commerce market is expected to expand by 12.5% in 2025 to $211.6b (₹17.7t), driven by strong consumer demand for online shopping and growing confidence in digital payments, according to GlobalData.
The E-Commerce Analytics report projects the market will maintain a compound annual growth rate (CAGR) of 11.5% between 2025 and 2029, reaching $326.7b (₹27.3t) by 2029.
Poornima Chinta, senior banking and payments analyst at GlobalData, said India’s e-commerce growth is being fueled by rising internet and smartphone use, secure payment tools, and the popularity of major shopping events such as Flipkart’s Big Billion Days, Myntra’s Big Fashion Festival, and Amazon’s Great Indian Festival.
The government’s GST rate cuts on essential and lifestyle products, effective September 22, 2025, are also expected to boost spending.
Major players like Reliance Retail, Amazon, and Flipkart are supporting the “GST Bachat Utsav” campaign to pass GST savings to consumers.
Private-sector initiatives are further strengthening the market. In December 2024, Amazon partnered with Startup India to help startups expand through mentorship and access to its platform.
In October 2025, the National Payments Corporation of India (NPCI), Razorpay, and OpenAI launched a pilot program integrating UPI within ChatGPT, allowing users to shop and pay directly through chat. Bigbasket is among the first platforms participating.
Digital wallets and UPI-based payments remain the top payment choices due to convenience and security, with Google Pay and Amazon Pay leading usage.
Credit cards rank second, preferred for benefits like cashback, EMI options, and discounts. In August 2025, the State Bank of India (SBI) and Flipkart launched a co-branded credit card offering exclusive rewards on Flipkart, Cleartrip, and Myntra.
Chinta said India’s e-commerce sector will continue its upward trajectory, supported by a young consumer base, advanced payment solutions, and favorable policy measures.