E-commerce is boosting India’s retail and services sector business, a study conducted by Access Markets International (AMI) showed.
AMI identified that the proliferation of mobile devices combined with internet access via affordable broadband solutions and mobile data is a key factor driving the tremendous growth in India’s e-commerce sector.
Besides online marketplaces and online retail, AMI recognised online travel, online deals and classified listings are the other fast growing areas within the e-commerce sector.
AMI study also found that Indian Government’s “Digital India” initiative is expected to boost the e-commerce industry.
There is already an upsurge in online transactions from tier 2 and tier 3 cities. AMI expects the Digital India initiative to further expand e-commerce as India’s tier 4 towns and rural areas will have access to internet.
Furthermore, government’s decision to develop India Post as a distribution channel for e-commerce related services will significantly increase the reach of e-commerce players and expand the potential market in rural areas as well.
“The next few years promise to bring about a transformation in technology usage among India SMBs as they embrace an online presence,” said Neha Jalan Goenka, Senior Manager of Client Services at AMI.
“With more and more businesses embracing e-commerce and many of the roadblocks such as connectivity and logistics being sorted out, AMI forecasts that by 2019, close to three in ten internet SMBs will offer online purchase facilities via their websites,” Goenka added.
Arya Krishnan
editor@infotechlead.com
