India’s e-commerce penetration will double to 11% by 2024: Goldman Sachs

India’s e-commerce industry is expected to reach $99 billion in size when online commerce penetration will more than double to almost 11%.
The growth rate for the industry in India, for each of the next four years, would surpass the same of established economies like the US, China, the UK, Europe and Brazil, according to Goldman Sachs’s review of e-commerce markets globally.
E-commerce is expected to register a growth of over 18% for the current year but estimates for 2021 and 2022 show a year-on-year growth rate of over 33% and 28% respectively. To compare, growth rates for the same period for the US are 17% and 19%, while it is nearly 11% for China in the next two years. To be sure, the market size base is bigger in both the US and China along with higher penetration of the total retail market.
The pandemic is accelerating both growth and penetration of e-commerce further in these markets, including in India. At a recent industry seminar, Prashant Prakash, partner at venture capital firm Accel, which was one of the early-backers of Flipkart, said it took a decade for India to see e-commerce penetration of around 3% and that it has quickly moved to 5%.