India's e-commerce market is expected to reach Rs 2.7 lakh crore to Rs 3.4 lakh crore (about $40 billion to $50 billion) by 2020. At present the e-commerce market in India is valued at around Rs 54,000 crore to Rs 81,000 crore ($8 billion to $12 billion).
The growth of digital retailers depends on the number of internet users, which is likely to grow to 650 million by 2020 from 260 million at present. The percentage of women users is also expected to grow by at least 20 percent, Press Trust of India reported, citing a joint report by Boston Consulting Group and Retailers Association of India, on Feb. 10.
Travel would account for 60 percent of e-commerce sales, whereas electronics would contribute to about 30 percent of the sales.
"Urban users would nearly double from about 80 million to about 120 million," the report said.
The report further added that around 400 million customers could become "digitally influenced" by 2020 and would account for 25 percent of those spending on the online retail sector. The digitally influenced spenders research products and compare prices before they decide to buy products.
"About $250 billion of retail spends would be digitally influenced, accounting for about 25 percent of the overall spend," the report added.