【India】How Did Logistics and E-commerce Shape India’s Growth in 2024?

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Editor’s Note

This article examines the rapid growth of India’s e-commerce sector and the critical logistics infrastructure enabling its convenience-driven consumer shift.

How did logistics and e-commerce shape India’s growth in 2024?
The E-commerce Revolution and Its Logistical Backbone

Two decades ago, buying a mobile phone or groceries meant visiting bustling markets. Today, it’s a matter of minutes. India’s e-commerce industry, projected to reach $325 billion by 2030, is a testament to innovation. According to a YouGov study, 73% of urban Indians shop online for convenience, and 64% prefer user-friendly apps. While 63% plan their purchases, 20% admit to impulse buys.

Driving this digital surge is a robust logistical backbone. Ports and air cargo hubs ensure seamless trade, enabling artisans and potters in Jaipur and Mithila to ship handmade pottery globally.

“Enhancing connectivity, achieving cost efficiency and building resilience and agility through technology adoption and capacity building have been key drivers as the logistics industry continues to enable India’s vision for Viksit Bharat 2047. Progress in rail and waterway freight movement, alongside extensive highway construction, has heralded a new era of multi-modal connectivity, setting the logistics sector on a robust growth trajectory. This progress strengthens India’s position as a rising global economic powerhouse.”

Logistics Sector’s Progress and Eco-friendly Practices
“2024 has been a year of significant progress for India’s logistics sector, underscored by sustained policy support and technological strides. With the transformative impact of the government’s initiatives towards infrastructural development and digitisation, the sector has shown its resilience and growth potential. With the projected market value of the Indian logistics sector reaching ₹47.12 lakh crore by 2030, (according to a recent report titled ‘A report on future talent requirements in logistic’), the integration of innovative technologies from digital platforms and autonomous vehicles and augmented reality are set to propel the industry further. Moreover, the commitment to eco-friendly logistics practices—such as emissions-reducing route optimisation and green packaging—positions India as an eco-conscious leader in the global supply chain.”

E-commerce in India: A Sector in Rapid Expansion

India’s e-commerce sector has witnessed exponential growth in recent years, driven by advancements in technology, increasing internet penetration, and a shift in consumer preferences towards online shopping. According to the Indian Brand Equity Foundation (IBEF), India’s e-commerce market was valued at $85 billion in 2023 and is expected to reach $200 billion by 2026, reflecting a compound annual growth rate (CAGR) of 20-25%. By 2030, India’s e-commerce industry is projected to reach $325 billion, marking it as a significant global player in digital commerce.

Empowered by technologies like AI, blockchain, and IoT, small businesses are thriving. As a result, even a textile entrepreneur in Gujarat has reached global audiences through social media ads and AI-driven insights.

India’s e-commerce evolution is more than convenience—it’s about empowering millions, building a connected economy, and shaping a future where every click contributes to a stronger, more inclusive India.

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⏰ Published on: December 25, 2024