The e-commerce transaction worth in India is probably going to rise from $83 billion in 2022 to almost $150 billion in 2026 at a 16 per cent compound annual growth price, a report confirmed on Wednesday.
The Philippines, Indonesia, India, Malaysia and Vietnam are projected to lead e-commerce growth in APAC by way of 2026, in accordance to the FIS Global Payments Report 2023.
“India has emerged as a worldwide funds chief, growing the subsequent technology of real-time funds infrastructure with the Unified Payments Interface (UPI), a challenge of the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI),” stated the report.
UPI’s dramatic success derives largely from its seamless interoperability with industrial wallets reminiscent of Google Pay, Paytm and PhonePe, it added.
Meanwhile, the worldwide e-commerce transaction worth is probably going to rise from $6 trillion in 2022 to over $8.5 trillion in 2026 at a 9 per cent compound annual growth price, in accordance to the report.
The explosive growth in international e-commerce in the primary two years of the pandemic has barely slowed in 2022, with a ten per cent YoY growth in international e-commerce transaction worth from 2021-2022.
Despite decreased growth charges in contrast to the preliminary pandemic interval, the forecast for international e-commerce stays bullish.
“All areas besides Europe noticed double-digit growth from 2021-2022, with the best growth of 21 per cent in the Middle East and Africa. Markets in Latin America, the Middle East, Africa, and Southeast Asia, aside from Thailand at 9 per cent, proceed to be high-growth markets,” stated the report.
In India, Open Network for Digital Commerce (ONDC), an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT) at Ministry of Commerce is envisioned to create a facilitative mannequin to revolutionise digital commerce, giving better thrust to penetration of retail e-commerce in India. Common Services Centres (CSC), below the Ministry of Electronics and IT (MeitY), stated it has invested in the ONDC to promote e-commerce and logistics in rural areas.
Currently, the ONDC community has greater than 40,000 sellers reside in over 200 cities.
“It is for the primary time that CSC has invested in an initiative like this. ONDC will democratise digital commerce by transferring to an open community. The partnership can even generate employment alternatives for rural youth by enabling a final mile logistics community,” stated Dinesh Tyagi, MD, CSC SPV.
However, some challenges nonetheless want to be addressed to maintain this growth.
For instance, the report stated the shortage of digital infrastructure and monetary inclusion in some rising markets can hinder e-commerce growth.
Additionally, regulatory challenges and cross-border commerce limitations can create obstacles for companies wanting to broaden globally, it added.
(With inputs from IANS)