India’s digital commerce to touch 2.1 lakh cr by Dec 2016

The Dollar Business Bureau

The digital commerce sector in India is expected to touch Rs.2.1 lakh crore by December 2016. A report reveals that a strong growth in the e-commerce sector has seen a growth of 68 percent from December 2015.

Between the period December 2011 to 2015, there is a CAGR growth of 30% in the digital commerce market. The IAMAI-IMRB report said that the digital commerce market was valued at Rs.125,732 crore by the end of December last year.

The online travel sector of the market stood at Rs.76,396 crore, which accounted for 61 percent of the market. However, in the future, it is expected to grow at a CAGR of around 40 percent and likely to reach Rs.1,22,815 crore by the end of 2016.

Online non-travel sections include financial services, e-tailing, classifieds and matrimony that accounted for Rs.49,336 crore by the end of December 2015.

The report also emphasized that online hotel bookings have grown 165 percent y-o-y and has gone up to Rs.5,200 crore last year from Rs.1,965 crore from the previous year.

Booking of railway tickets online has also grown at around 34 percent to Rs.21,708 crore in December 2015 from Rs.16,200 crore in 2014.

E-retailing also saw a growth of 57 percent y-o-y. Personal computers (Rs.4,726 crore), mobile phones and accessories (Rs.14,109 crore), apparel and footwear (Rs.7,142 crore) and consumer durables (Rs.6,452 crore) dominated the category.

The market for financial services grew at a CAGR of about 17 percent between 2012 and 2015.

The report said, “The market reached close to Rs.5,231 crore in terms of transactions as of December 2015. The demand for online utility payment is expected to reach Rs.6,068 crore by December 2016."

It is also expected that the demand for other online services will grow at a CAGR of 36 percent to reach Rs.5,027 crore by December 2016.