China’s ecommerce market is projected at $1.1T by 2020, vs India’s at $75…100B. How do we accelerate growth? India expects to see online sales expand five-fold by 2020. But in that year China’s ecommerce revenues are projected to be $1.1 trillion, more than ten-fold higher than India’s (source: Forrester, which estimates $75B ecommerce revenues for India 2020; others incl. PwC, Morgan Stanley estimate ~ $100B).
India faces major challenges and impediments to faster growth, especially
- Under-developed logistics
- Poor last-mile connectivity
- Cash economy
- Low smartphone/broadband penetration.
- Gaps in consumer confidence in ecommerce/epayments
Broad Nasscom recommendations:
- Align regulations and enforcement to overall govt policy objectives (Digital India) and overall development strategy (technology-enabled development)
- Given its economic and governance benefits, ecommerce transactions should be incentivized, and in any case not be disadvantaged as compared to physical/offline transactions
- Focus on consumer and citizen, as well as SMEs, MSMEs and startups who are the foundation and future of the economy and industry.
- Regulatory environment aimed at encouraging and facilitating the use of digital and other technology to empower citizens, consumers, businesses.
Read the five specific recommendations in the document.