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Indian E-commerce market expected to touch $80 billion by 2020 |
With
the growing popularity of online shopping in India, the e-commerce
companies are expected to invest close to $6-8 billion in logistics,
infrastructure and warehousing in the next few years, an Assocham-PwC
study said here on Wednesday.
The e-commerce market in India is
expected to touch $80 billion by 2020.
At present, there is a very
low level of air cargo penetration and only a few airports are
equipped to handle large volumes of express delivery parcels. As
e-commerce gathers momentum and moves to the tier-II and tier-III
cities, there will be increasing demand of expanding air cargo
connectivity to smaller towns.
The industry would invest about $8
billion by 2025, the study noted. “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 utilising existing resources well,”
said D.S. Rawat, Secretary General, Assocham.
The overall e-commerce
industry, valued at $25 billion has been growing at a compounded
annual growth rate of about 35-40 percent each year, the study said,
adding that it is expected to cross the $100 billion mark in five
years. "India is successful in 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.
with the reference of : firstpost