By Arti Agarwal,News18

Copyright news18

India stands at a pivotal moment in its retail evolution. With a market valued at US $1.06 trillion and projected to nearly double US $1.93 trillion by 2030, e-commerce is set to contribute close to 16 per cent. What was once seen as a convenient alternative has now become the preferred shopping channel for millions of households.
This festive season alone, the share of households choosing e-commerce as their primary mode of shopping surged by 115 per cent, with more than 60 per cent urban families planning to shop online, according to a recent LocalCircles report. These shifts mark more than a festive upswing—they signal a structural transformation in buying behaviour that is reshaping retail, widening opportunities for small businesses, and fueling India’s digital and economic momentum.
Central to this change is the growing trust in digital platforms that offer wider product choices, unmatched convenience, and the assurance of easy returns and refunds. What makes this transformation even more significant is its penetration beyond metros. The Deloitte-FICCI report highlights that Tier II and III cities now generate over 60 per cent of all e-commerce transactions in India. This democratisation of opportunity has been powered by affordable smartphones, seamless digital payments, and trustworthy delivery infrastructure.
Driving Enterprise, Employment & Equitable Growth
The true promise of India’s e-commerce revolution lies in how it empowers micro, small, and medium enterprises. Digital marketplaces now connect millions of small sellers—many from India’s heartland—with customers nationwide, ensuring that festive prosperity flows well beyond metropolitan centers.
Government initiatives such as One District One Product (ODOP) and the Production-Linked Incentive (PLI) scheme are further amplifying this transformation. By providing policy support, market access, and incentives, these programmes are creating structured pathways for local entrepreneurs to participate meaningfully in the digital economy.
E-commerce is also proving to be a powerful employment engine. Each festive season generates substantial employment across logistics, packaging, customer service, and technology roles. This serves as both an economic multiplier and an engine for skills development, particularly for young people in smaller cities and towns.
Trust: The Foundation for Sustainable Growth
For India’s digital commerce ecosystem to realise its full potential, trust remains fundamental. The recent LocalCircles survey shows that Indian consumers place the greatest trust in platforms with transparent and effective returns and refund processes, with Amazon emerging as the most preferred among e-commerce sites, while Big Basket leads among quick commerce platforms. Nearly 90 per cent households also cite quality assurance, fair pricing, and hassle-free returns as decisive factors in their shopping choices. The takeaway is clear: customer trust is key, and platforms that prioritise consumer protection are not only driving festive sales but also building lasting customer relationships that sustain growth year-round.
The shift to digital payments further illustrates this trust transformation, with over 90 per cent of urban households expected to transact digitally this festive season. Embedded payment solutions, streamlined checkouts, and robust security measures have made online commerce safer and more frictionless than ever, reducing cash dependence while creating efficiencies throughout the value chain.
Building Toward Viksit Bharat 2047
As India advances towards becoming a developed nation by 2047, e-commerce stands as both catalyst and exemplar of inclusive progress. By connecting remote artisans with global markets, digitising traditional businesses, and creating economic opportunities across the socioeconomic spectrum, e-commerce demonstrates how technology can drive equitable growth and global value chain integration.
The festive season of 2025 may indeed mark a turning point—not just in sales figures but in how we conceptualise commerce itself. By harmonising technological innovation with trust and inclusivity, India’s digital marketplace can establish global benchmarks for responsible retail.
As the lights of celebration brighten homes across our nation, we must reflect on a deeper truth: true progress isn’t measured solely by transaction volumes or growth percentages, but by how we empower communities, preserve cultural heritage, and create opportunities for all Indians. In this journey, e-commerce isn’t simply facilitating commerce—it’s helping write the next chapter of India’s economic story, where every business, consumer, and community has the opportunity to thrive.
India is, therefore, uniquely positioned to drive e-commerce policy discussions in the APAC region by hosting the 2nd APAC E-commerce Policy Summit on November 3-4, 2025, in New Delhi. The summit provides a unique opportunity for all stakeholders in the ecosystem to interact with an objective that digital transformation leaves no one behind.
The author is professor, Indian Council for Research on International Economic Relations. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.