E-Commerce as a Catalyst for Economic Development: A Focus on India

Abstract

This abstract examines the pivotal role of e-commerce in shaping economic landscapes, with a specific emphasis on its transformative impact in India. E-commerce, synonymous with electronic commerce, involves the online exchange of goods, services, and financial transactions. The dynamics of businesses driving internet-based commerce in India differ markedly from traditional models, signaling a paradigm shift. Projections suggest that India's e-commerce market is poised for exponential growth, estimated to reach an impressive 200 billion US dollars by 2026, a sharp ascent from 38.5 billion US dollars in 2017. This growth trajectory is propelled by factors such as increased internet and smartphone penetration in a nation that serves as a hub for digital connectivity. The surge in digitalization is forecasted to elevate India's total internet users to 829 million by 2021, fostering an economic surge that could double the nation's GDP from US$ 125 billion in April 2017 to US$ 250 billion by 2020, primarily driven by the burgeoning e-commerce sector. The abstract underscores the cumulative effects and increasing returns associated with e-commerce, factors that have been witnessed globally and are anticipated to sustain high rates of growth. In essence, the analysis highlights how e-commerce is reshaping the economic trajectory of nations, showcasing India as a compelling case study for the transformative power of digital commerce in fostering economic development.