Monday, July 5, 2021

India’s digital economy to grow 10x to $ 800 bn by 2030

India’s consumer digital economy which was pegged at US$ 85-90 billion in calendar year 2020, is expected to become a $800 billion market by 2030, according to reports released by consulting firm RedSeer at its flagship event Ground Zero 5.0.

The digital economy includes 60 per cent of travel, 40 per cent non-grocery retail, 30 per cent of education, 25 per cent of food and beverages services and 6 per cent of pharma/grocery going through digital channels by calendar year 2030.

Online retail is set to become the third-largest market by scale by CY30 with an annual gross merchandise value (GMV) of $350 billion in CY30, said RedSeer.

The Ground Zero 5.0 event was attended by Amitabh Kant, CEO of Niti Ayog along with TV Mohandas Pai, chairman, Manipal Global Education Services and Sanjeev Bikhchandani, co-founder, Info Edge along with other stalwarts of the startup industry.

“Over the last one decade, entrepreneurs have dedicated themselves to solve for the specific needs and pain areas of Indian consumers.

“Today, more than 50 per cent customers say they use online services because of convenience,” said Anil Kumar, founder and CEO of RedSeer. “Few years back almost over 70 per cent used to say the key reason is discounting but with the hit of Covid, digital services have undoubtedly served the customers very well, which is evident in high customer satisfaction and customers willingness to keep using the digital as a key channel to fulfill their needs.

“The next wave of entrepreneurs will create innovations which will make the Indian model successful globally.” According to the data released by RedSeer, 88 per cent of online shoppers that will be added between 2020-2030 will be from Tier-2, 3,4 cities.

Further, cumulatove incremntal online transactions are expected to be added worth $7 billion from tier-2-plus city customers over CY 20-30.

Overall, more than about $150 billion cumulative incremental online retail GMV is expected to be added from Tier-2-plus city customers over CY 20-30. (www.rediff.com)

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