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Indian E-Commerce Industry To Surpass US by 2034; Become Second Largest in the World

Shiprocket's State of Cross-Border Trade Survey claimed that India's total merchandise exports continue to cross the $100 billion mark for the second consecutive quarter in a row

Indian E-Commerce Industry To Surpass US by 2034; Become Second Largest in the World
MSME exports power 40 per cent of India's overall exports, contributing to approximately 6.22 per cent of the country's GDP
POSTED ON June 15, 2023 4:15 PM

Shiprocket X, a cross-border shipping product of ecommerce enablement platform Shiprocket, published its survey report titled 'The State of Cross-Border Trade'. It stated that India is ranked ninth in global cross-border growth. 

The country's total merchandise exports continue to cross the $100 billion mark, for the second consecutive quarter in a row, amounting to $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 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 per cent of global e-commerce and is a vital determinant of the level of ease of doing business (EoDB) 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 $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 indicate a strong demand for cross-border trade of Indian products.

Shiprocket
Simplified cross-border trade represents 20 per cent of global e-commerce

Akshay Ghulati, co-founder, strategy and global expansion of 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 for empowering 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 play a crucial role in powering 40 per cent of India's overall exports, contributing to approx. 6.22 per cent of the country's GDP. 

The transformational changes in consumer buying behaviors have also played a key role in growing global e-commerce trade opportunities. With around 63.4 per cent million units spread across the geographical expanse of India, MSME exports will play the role of a catalyst in restoring the strength of the Indian economy. The industry body FISME in a study paper said that e-commerce export potential is $200 to $300 billion range by 2030.

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