The growth of eCommerce in India is a very rapid one. The reports by the Central statics Office(CSO) and the International Monetary Fund(IMF) it is evident that India is among the fastest-growing economies in the world. The emergence of internet commerce and the retail market become dominant have a contribution to the unparalleled Indian eCommerce industry growth.

The financial year 2016-17 made eBusiness sales of approximately $16 billion and it is estimated to have a 7 times growth in the next two fiscals. This means, by 2020 the online store sales going to cross $120 billion, as per the report by investment bank Morgan Stanley. Also, the Government gives support for online stores through the Digital India scheme.

Growth in eCommerce Sector of India

The three major factors that caused the growth in the Indian eCommerce business are,

• Participation of niche companies
• Unmatched FDI (Foreign Direct Investment)
• Uniform GST (Goods and Services Tax)
• Inclusion of food and Grocery trading

Participation of Niche Companies

Now people are more familiar with the advantages of e commerce. You can find the Top Seven Advantages of e Business Websites for Your Store from here. Their awareness caused a significant investment in this online store business. Many business firms have been going together with both online and offline trading. They accepted the factor that selling products through the internet is the future. New firms are introduced to the online retailing in every single day.

Most of the eBusiness companies are concentrating on specialization and customization. They will be selling a special segment of products only. Only a few businesses believing in ‘one for all’ concept. Giving attention to all kinds of products is a little complicated. Specializing in a particular segment of items can help you maintain the quality of products. Also, Customers will appreciate this kind of personalized treatment.

A highly diverse country like India has a large scope of blooming firms to be a part of this eCommerce industry. The sales opportunities offered by this are countless like food, clothing, electronic gadgets, beauty products, medicines, and almost anything.

Role of FDI

Lately, Foreign Direct Investments were available only for B2B businesses, but now it is changed. The FDI is now available for both wholesale trading and business with limited use of technology platforms. Many companies from Europe and the United States attracted to the rapidly growing Indian eBusiness market and invested in it. FDI has certain restrictions by government laws. So, for now, their full participation is not possible.

Implementation of GST

Goods and Services Tax has a taxation structure that can contribute to the success of eBusiness. This uniform tax structure all over the nation makes the calculations a lot easier than before. The same tax for the same product or service everywhere in this country will help in price uniformity. Following differential tax structure will discourage online business. For building and maintaining eBusiness websites, many e commerce companies in India are available. So owning a successful online store will be a cakewalk for you.

Inclusion of food and Grocery in Online Retailing

At the beginning stage of eBusiness, food items and groceries are not considered as items to sell online. The consumer’s lifestyle changes and convenience made the online food industry to become one of the main eCommerce business with numerous companies.

Final Thoughts on Growth of eCommerce Sector in India

India is now not only one of the biggest economies in the world It is a great place for the eCommerce industry not only for established companies but for start-ups too. So in 2020, the number of digital buyers will rise to 329 million.