NEW DELHI: June 29, 2016. A report from PwC and India’s chamber of commerce association Assocham says online companies will invest US$6-US$8 billion in logistics to support an e-Commerce market worth US$80 billion by 2020.
The report notes the country currently has very few airports capable of handling the expected growth in air express shipments.
India’s e-commerce industry, currently valued at US$25 billion, has been growing at a compounded annual growth rate of 35-40 per cent each year and is expected to exceed US$100 billion by 2021, said the study.
“Innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. The companies will need to invest in automation, while utilizing existing resources well,” declared Assocham secretary general D S Rawat.
PwC said 60-70 percent of India’s e-commerce sales are currently generated by mobile devices and tablets: “Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics have provided the e-commerce sector in India the unique opportunity for the companies to connect with their customers,” it explained.
"India is becoming the largest e-commerce market in the world. The rapid transformation in logistics, innovation, consumerism and productivity prove to be an interesting case study for other emerging economies," Rawat added.