India’s e-commerce sector is set for exponential growth, with its market size projected to soar over four times to $550 billion by 2035, according to a joint report by Anarock and ETRetail. Released at The Economic Times Great India Retail Summit 2025 in Mumbai, the report highlights the sector’s rapid transformation driven by digital adoption and evolving consumer trends.
Robust Growth Trajectory
As of 2024, India’s e-commerce market stands at $125 billion. The report estimates that by 2030, this figure will reach $345 billion, growing at a compound annual growth rate (CAGR) of 15%. The sector’s expansion reflects the increasing integration of digital platforms into everyday retail consumption.
Factors fueling this surge include rising internet penetration, smartphone adoption, enhanced digital payment infrastructure, and a growing base of tech-savvy consumers. Government-led initiatives like Digital India and continuous advancements in logistics and supply chain networks have further strengthened the industry’s growth prospects.
Beyond Metros: Tier 2 & 3 Cities Driving Demand
While metro cities continue to dominate e-commerce transactions, platforms are now expanding their reach to smaller towns and cities to tap into emerging demand. Anuj Kejriwal, CEO & MD of Anarock Retail, emphasized that the evolving consumer landscape in non-metro regions is opening new growth opportunities for online retail businesses.
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Retail Industry on a Growth Path
The report also sheds light on India’s broader retail industry, which is expected to reach a market size of $2,500 billion by 2035—a three-fold increase from 2019. The key drivers behind this expansion include rising disposable incomes, urbanization, a growing middle class, and a digitally empowered younger population.
With a favorable business environment and technological advancements paving the way, India’s e-commerce sector is poised to be a critical player in shaping the future of global digital retail.
