India Has The Potential To Increase Its Economic Welfare By 67 Percent: Ebay India

Moreover, eCommerce support the domestic economy and bring remote sellers and buyers closer together. With domestic sellers on eBay India reaching out to an average of 19 states across the country, eBay boosts inter-state trade in India. Sellers located in Delhi and Maharashtra by far dominate as the largest net exporters within India. Kerala, Karnataka and Andhra Pradesh are the largest net consumers within India on the eBay platform. The five largest inter-state trade flows, which are from Maharashtra to Karnataka as well as to Tamil Nadu, followed by flows from Delhi to Karnataka, Maharashtra and Tamil Nadu, the report said.

In addition, the Internet-enabled trade enhances competition and reduces prices because it offers businesses very low market entry barriers. Consumers in remote or rural areas benefit most in these markets, where competition is traditionally weaker because there are fewer suppliers. Lower prices also lead directly to welfare gains because a high level of competition, allowing buyers to compare prices from a variety of retailers, helps bring prices down. The report also calculated the welfare gains that would prevail if all international trade were to become Internet-enabled. For India, the welfare gain was estimated to be 67 percent, the third highest among the leading countries of the world.

It is currently subject to a wide range of restrictions and faces trade barriers, especially for crossborder transactions (exports & imports), it added.

According to industry estimates, India's e-commerce sector is expected to account for 7 per cent share of the country's retail market amounting to $ 60 billion by 2023, reports PTI.

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