Net commerce in India to reach $10.4 billion in 2011
Date: Thursday , March 31, 2011
The Indian ecommerce industry is expected to grow by 47 percent and touch Rs46,520 crore ($10.4 billion) by end of 2011. This was indicated in a study by the Internet and Mobile Association of India (IAMAI). The report said that the market which was at Rs8,146 crores in 2007 came a long way from there and reached an estimated Rs31,598 crores by 2010. The report also points out that it is the online travel industry that is leading the market. The online travel industry was Rs6,250 crores in 2007 contributing about 77 percent of the industry then. In December 2010 this industry stood at Rs25,258 crores, about 80 percent of the total ecommerce market and is expected to grow to Rs37,890 crores by December 2011.
As of 2009, second to online travel comes eTailing with 7.82 percent share which equals to Rs1,550 crores. In eTailing, computers and computer peripherals account for Rs560.52 crores while cameras, mobiles and MP3 players contribute Rs389 crores. Other major contributors to net commerce include online classifieds (jobs, online matrimonial, cars, real estate and others), buying movie tickets, food delivery and gaming subscription is estimated to be Rs1,210 crores. Financial service transactions over the Internet comprise nearly 7.8 percent of the market size, which is about Rs1,540 crores.
According to the report Indian online users have exhibited willingness to make purchases over the Internet and this attributes to the growth in net commerce industry. Given the increasing awareness and acknowledgement, the overall industry is set to experience a high growth in the next couple of years.