India’s e-commerce market to rise 12.5% this year to cross $200m

• Harmony of government support, business innovation, and ever-evolving payment systems promises sustained growth and new value for years to come.
• The shopfronts may be digital, but the excitement is thoroughly real, with each click opening new opportunities for sellers, buyers, and investors alike.

India’s e-commerce market—a journey marked by unstoppable growth, vibrant digital innovation, and a bold reimagining of how the nation shops – is set for a remarkable growth.

In 2025, India’s e-commerce sector is set to accelerate by 12.5 per cent, scaling new heights at Rs17.7 trillion (that’s about $211.6 billion).

What’s fueling this ride? It’s a cocktail of digital enthusiasm, newfound trust in seamless payments, and a clear push from policy and innovation.

Consumer confidence

Why are Indians warming up to online shopping at such breakneck speed? For one, internet and smartphone access has become nearly universal, making it possible for residents from big cities to remote villages to fill their carts with just a tap.

Add to this a wave of secure, intuitive payment tools—think UPI-based systems and international wallets like Google Pay and Amazon Pay—and you get a digitally empowered population eager to shop.

Shopping festivals have become established cultural events, with Flipkart’s Big Billion Days, Myntra’s Big Fashion Festival, and Amazon’s Great Indian Festival transforming everyday consumers into festive bargain hunters.

Every celebratory sale seems to break its previous record, pulling in millions of eager buyers.

Policy support boosting spending

Here’s where government policy steps in, giving a further push to the e-commerce boom. Starting September 22, 2025, GST rate reductions on essentials, gadgets, fashion, and wellness goods have loosened purse strings.

The ambitious 100-day “GST Bachat Utsav” campaign requires transparent discount disclosures and real tracking of savings passed to consumers—raising the bar for industry ethics and goodwill. Major players like Reliance Retail, Amazon, and Flipkart have thrown their full weight behind this initiative.

New growth opportunities

It’s not just policy at work. Private sector collaboration and startup empowerment are fueling the digital shopping engine.

Amazon’s December 2024 partnership with the Startup India initiative is proof: budding entrepreneurs now have access to mentorship, upskilling, and entry to advanced marketplaces—planting seeds for the next generation of e-commerce disruptors.

In October 2025, the National Payments Corporation of India, Razorpay, and OpenAI rolled out a pilot using ChatGPT as a UPI-powered shopping assistant. Now, shoppers can browse and pay within a chat, merging conversation and commerce. Bigbasket is among the first online supermarkets to test this, setting an example for wider adoption.

Today, versatile payment methods lead the way. UPI and mobile wallets have embedded themselves as the preferred payment tools for both shoppers and merchants, celebrated for their speed, safety, and simplicity.

Credit card usage is climbing too, driven by reward points, cashback schemes, and perks like interest-free installment plans. Flipkart’s August 2025 tie-up with State Bank of India to launch a co-branded credit card epitomises this fusion of convenience and consumer-first offers.