e-retail crosses $65 bn in 2025

PTI

New Delhi

India's online retail market capped 2025 with renewed vigour as e-retail gross merchandise value (GMV) scaled to nearly $65-66 billion, growing 19-21% in value terms, according to a report by Bain & Company compiled in collaboration with Flipkart.

The report, How India Shops Online 2026, sees India's e-retail market at $170-180 billion by 2030, sustaining 20% plus annual growth, propelled by rising shopper penetration and spend per shopper. It said India has emerged as a global leader in quick-commerce (q-commerce), with 16-17% of e-commerce GMV flowing through the segment, significantly ahead of most markets, including China.

The segment has doubled annually over the past two years, reaching $10-11 billion GMV in 2025. Looking ahead, it is expected to reach $65-70 billion by 2030 and contribute 45-50% of incremental e-retail GMV, as traditional e-retail continues to anchor the overall market with 60-65% share by 2030.

The report said that overall growth also accelerated through the year, supported by improving macroeconomic conditions and consumer sentiment. Private consumption growth rose from 8% between 2022 and 2024 to 10.5% in 2025, driven by GST cuts, income tax relief, easing inflation, and lower lending rates.

"This momentum drove second-half growth of 22-24% and an estimated 23-25% growth in Q1 2026, reflecting a broader revival in consumption and discretionary spending," the report said.

As per the report, India is emerging as a critical global consumption engine, poised to capture one in eight incremental consumption dollars over the next five years.