India’s Online Retail Market Space Registers Growth in 2025

New Delhi: Aided by improving macroeconomic conditions and consumer sentiment in the country, India’s online retail market space in 2025 grew significantly as e-retail gross merchandise value (GMV) scaled to nearly $65-66 billion, growing 19-21 per cent in value terms, according to a report by Bain & Company compiled in collaboration with Flipkart.

The report, however, projects India’s e-retail market at $170-180 billion by 2030, sustaining 20 per cent-plus annual growth, propelled by rising shopper penetration and spend per shopper. “India has emerged as a global leader in quick-commerce (a term that denotes instant and ultra-fast local delivery service), with 16-17 percent of e-commerce GMV flowing through q-commerce, significantly ahead of most markets, including China,” the report said.

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

The report further noted that overall growth also accelerated through the year, supported by improving macroeconomic conditions and consumer sentiment. “The private consumption growth rose from 8 per cent (2022-24) to 10.5 per cent in 2025, driven by GST cuts, income tax relief, easing inflation, and lower lending rates,” it said.

“This momentum drove second-half growth of 22-24 per cent and an estimated 23-25 per cent growth in Q1 2026, reflecting a broader revival in consumption and discretionary spending. India is emerging as a critical global consumption engine, poised to capture 1 in 8 incremental consumption dollars over the next five years,” it added.