New Delhi, April 9 (NationPress) The online retail sector in India has achieved a remarkable value of approximately $65–66 billion in 2025 regarding gross merchandise value (GMV) and is anticipated to experience an annual growth rate exceeding 20 percent, potentially reaching $170–180 billion by 2030. This growth is expected to capture nearly one in ten retail dollars, according to a report released on Thursday.

The study conducted by Bain and Company in collaboration with Flipkart highlights that the e-retail gross merchandise value has seen an increase of 19–21 percent in monetary terms.

The growth trend has accelerated over the past year, fueled by improved macroeconomic conditions and enhanced consumer confidence, as per the report.

In 2025, private consumption growth surged from 8 percent (2022–2024) to 10.5 percent, driven by reductions in GST, tax relief, easing of inflation, and lower lending rates.

This positive momentum resulted in a growth rate of 22–24 percent in the second half of the year and an estimated 23–25 percent growth in the first quarter of 2026, indicative of a wider revival in consumption and discretionary spending.

Additionally, quick commerce (Q-commerce), which involves delivery in under 30 minutes, has seen its GMV double annually over the last two years, reaching $10–11 billion in 2025 and is projected to grow to $65–70 billion by 2030.

Despite this, traditional e-retail is expected to remain the backbone of the overall e-retail market, holding a 60-65 percent share by 2030.

India is positioning itself as a significant global consumption powerhouse, likely to capture one in eight incremental consumption dollars in the next five years.

The shopper demographic has more than doubled in the last five years, reaching 290–300 million by 2025, bolstered by rapid expansion of the seller ecosystem and deeper geographic reach.

Generation Z accounts for 40–45 percent of e-retail shoppers, contributing nearly half of the incremental e-retail orders in 2025, with their spending per shopper increasing at a rate 2.5 times faster than other demographics in metropolitan areas.

This generation exhibits unique shopping preferences across various categories such as lifestyle, beauty, and electronics, utilizing social media for trend discovery, immersive videos, and instant credit options.

According to Manan Bhasin, Partner at Bain & Company, "Shopping behavior in quick commerce is unique; high-intent shopping missions result in a higher frequency of searches, faster checkout speeds, and increased conversions. Sessions average less than five minutes, which is half the time of traditional e-commerce journeys."

aar/pk