India attracts global big guns for e-commerce boom
India has officially overtaken the US as the second largest e-commerce market, bolstered by a powerful Gen Y led middle class and supported by a robust digital economy.
With over 800 million internet users and nearly 700 million smartphone connections today, India’s ecommerce market is rewriting global retail maps – and the world’s biggest players want in. According to Statista, the e-commerce market in India is expected to reach US$550 billion by 2035, up from about US$125 billion in 2024. Digital connectivity remains a key factor driving growth and opportunity, with mobile penetration now topping 1.2 billion connections — about 85 per cent of India’s population. More than 80 per cent of e-commerce transactions in India happen via mobile, making it the ultimate mobile-first market. And with new digital payment solutions and UPI (Unified Payments Interface) transactions exceeding 10 billion per month, the market is leaping ahead in cashless transactions.
By 2030, more than 1.1 billion Indians are projected to be online shoppers, contributing to a digital economy worth over US$1 trillion annually.
This huge data footprint is a goldmine for companies that know how to turn raw information into customer insights. Modern e-commerce players in India rely on Ai-driven recommendation engines, predictive analytics, and hyper-local marketing to compete – and they need skilled people who can interpret that data to deliver the right product, at the right time, for the right customer.
All this growth is being driven by a combination of technological shifts, rising income levels, and favourable demographics. It’s no wonder the world’s biggest digital players are fighting to secure a stake in the digital land grab and secure India’s e-commerce market share.
E-commerce giants and the Ai arms race
Amazon has now invested over US$6.5 billion in India, and nearly 80 per cent of urban online shoppers say they’ve used Amazon at least once in the past year. Alibaba remains entrenched via local partners like Paytm and BigBasket, while Walmart’s majority stake in Flipkart keeps the competition fierce. Homegrown powerhouses like Reliance Jio and Tata Neu are also expanding, armed with deep pockets and Ai-first digital strategies. Despite digital leaps, last-mile delivery, supply chain bottlenecks and data privacy remain big challenges. Here, cutting-edge data science and predictive Ai logistics are vital to navigating India’s vast, diverse geography. Many businesses are doubling down on talent that can combine business analytics, Ai modelling, and human-centred thinking to keep pace with this scale of the e-commerce market in India.
Millennials in the middle
By 2025, India’s middle class is expected to grow to 583 million people — almost 40 per cent of the population — driving 75 per cent of consumer spending. Add to this the next wave: Gen Z. By 2030, nearly 50 per cent of India’s consumers will be under 30 - digital natives who expect hyper-personalisation, instant delivery, and ethical brands. The growth of India's e-commerce market is deeply tied to these shifting generational expectations.
The new edge: smarter skills, smarter growth
Whether it’s designing Ai recommendation systems, crunching vast consumer data, or managing a diverse workforce across continents - tomorrow’s leaders need sharp skills to keep up. That’s why professionals across Asia and beyond are levelling up with qualifications in Business Analytics, AI Strategy and People Analytics – combining tech with a human edge to grow sustainable businesses in booming markets like the e-commerce market in India.
Learn more about how an RMIT Online qualification can position you to turn data into opportunity - in India and beyond. Talk to our Enrolment Advisors today on 1300 701 171.