Summary

India’s ecommerce sector will grow at a compound annual growth rate (CAGR) of 20% between 2018 and 2030, with gross merchandise volume (GMV) hitting $284bn in 2030, up from $33bn in 2018. The main drivers for this growth are increased Internet and smartphone penetration, growing consumer purchasing power, and the influence of a younger, more tech-savvy generation. Fast-growing internet services like ecommerce, mobile payments, and video-streaming have become a contested battleground in India, with giant foreign firms pitched against smaller, home-grown companies.

India is taking center stage as one of the world’s fastest-growing economies, with the annual rate of expansion averaging about 7% over the past five years. It is also on track to become the youngest country in the world by 2020 and its 500 million online users spend more time on the Internet than the worldwide average. In addition, its middle-class population will surpass that of China by 2030.

A number of government-sponsored policies, like the goods and services tax (GST) and the new bankruptcy law, have benefitted both the vibrant private sector and India’s start-up ecosystem. In just five years the country has leapfrogged from 142nd to 77th position in the World Bank’s ease of doing business rankings. Combine these figures with a relatively low mobile Internet penetration rate - only 35% of Indians had a mobile internet subscription at end 2018, compared to 57% in China, according to estimates - and it’s easy to conclude that India’s technology, media, and telecoms (TMT) sector is set to grow rapidly over the next five years.

Indian industrial conglomerate Reliance Industries is well positioned to disrupt the country’s fast-growing ecommerce and mobile payment markets. Building on a foundation of 300 million Reliance Jio mobile subscribers and the country’s biggest retail chain, the company’s ambition is to combine its retail and ecommerce operations into a digital empire. New regulation which places tough restrictions on foreign companies is on its side, and Reliance’s ecommerce platform, set to be launched in the second half of 2019, will shake up the market without facing the same regulatory burden as rivals like Amazon.

Although not openly protectionist, the Indian government is increasingly supervising competition in these markets and challenging tech giants with tougher regulation. Given the nationalistic tech agenda of successive Indian governments, the likely outcome is the birth of a national champion able to counterbalance the likes of Google, Facebook, and Amazon with Reliance Industries matching all the criteria for this role.


Scope

  • This report looks at the state of India’s TMT sector as well as its tech-driven automobile sector. It contains analysis of India’s IT services, consumer electronics, social media, ecommerce, and mobile payments markets, as well as TV broadcasting, video streaming, and fixed and mobile telecoms. There are market forecasts for each of these segments, and analysis of the leading companies.
  • Internet companies dominate India’s investment scene. Fast-growing internet services like ecommerce, mobile payments, and video-streaming have become a contested battleground, with giant foreign firms pitched against smaller homegrown companies. Although not openly protectionist, the Indian government is increasingly supervising competition in these markets and challenging tech giants with tougher regulation. Given the nationalistic tech agenda of successive Indian governments, the likely outcome is the birth of a national champion able to counterbalance the likes of Google, Facebook, and Amazon, with Reliance Industries matching all the criteria for this role.




Reasons To Buy

  • This report identifies tomorrow’s leaders in India’s tech scene based on their competitive position in what we consider the country’s industries of the future.
  • It analyzes the major markets in India’s TMT industry and provides market sizing data. These markets include IT services, ecommerce, mobile payments, and fixed and mobile telecoms.