New Delhi: The value of e-commerce transactions in India is expected to grow from $83 billion in 2022 to around $150 billion in 2026 at a 16 per cent compound annual growth rate, a report said on Wednesday. According to the FIS Global Payments Report 2023, the Philippines, Indonesia, India, Malaysia and Vietnam are projected to lead e-commerce growth in APAC by 2026.
“India has emerged as a global payments leader, developing the next generation of real-time payments infrastructure with the Unified Payments Interface (UPI), a project of the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI). Used to be. ,” the report said. ,Also read: Earn up to Rs 2 lakh every month by investing Rs 2 lakh in this business,
It added that the dramatic success of UPI derives largely from its seamless interoperability with commercial wallets such as Google Pay, Paytm and PhonePe. ,Also read: Online gift fraud: Pune woman with MBA degree duped of Rs 37 lakh – check how she lost the money,
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Meanwhile, according to the report, the global e-commerce transaction value is expected to grow from $6 trillion in 2022 to over $8.5 trillion in 2026 at a 9 percent compound annual growth rate.
The explosive growth in global e-commerce in the first two years of the pandemic is set to slow slightly in 2022, with global e-commerce transaction value expected to increase by 10 percent annually through 2021-2022.
Despite lower growth rates compared to the early pandemic period, the forecast for global e-commerce remains bullish.
“All regions see double-digit growth by 2021-2022 except Europe, with the Middle East and Africa seeing the highest growth of 21 per cent. Latin America, the Middle East, Africa and South East Asia continue to be high growth markets, with the exception of Thailand at 9 per cent, the report said.
In India, the Open Network for Digital Commerce (ONDC), an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, envisages creating a facilitative model to revolutionize digital commerce, allowing retail penetration can be emphasized more. E-commerce in India. The Common Services Center (CSC) under the Ministry of Electronics and IT (MeitY) said it has invested in ONDC to promote e-commerce and logistics in rural areas.
Currently, the ONDC network consists of over 40,000 vendors across 200+ cities.
“This is the first time that CSC has invested in such an initiative. ONDC will democratize digital commerce by moving to an open network. Dinesh Tyagi, MD, CSC SPV said, “This partnership will also create employment opportunities for rural youth by enabling last mile logistics network.”
However, there are still some challenges that need to be addressed to sustain this growth. For example, the report notes that a lack of digital infrastructure and financial inclusion could hinder e-commerce growth in some emerging markets.
Additionally, regulatory challenges and cross-border trade barriers can pose barriers to businesses seeking to expand globally.