The Emergence of Ecommerce and Logistics in India

The emergence of Ecommerce and Logistics in India has surged over the past couple of years, and will continue to grow even more over the next few years. This is mainly thanks to the recent rise in digital literacy as well as the new influx of online shoppers. In this article, we will delve into the recent growth rates of these sectors, as well as what MSME’s mean to the economy of India, and what it could mean for a future MBE Master Franchisee in India.

Since 2014, India’s government has taken many steps to support and contribute to the ecommerce world, by creating initiatives like “DigitalIndia” and “Start-Up India”. These initiatives have supported the growth of the ecommerce sector over the past several years. India has gained 125 million online shoppers in the past 3 years, with 80 million more expected by 2025. Due to the influx of shoppers, and the initiatives created by the government, the ecommerce market in India is expected to grow at a compound annual growth rate (CAGR) of 27%, to reach US $163 billion by 2026. 

Start-Up India: A flagship initiative of the Government of India intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. 

Digital India: A flagship program created by the Government of India intended to improve digital literacy universally in India. 

Thanks to the recent growth in the ecommerce sector, the demand for fulfillment centers has surged over recent years. Logistics are a crucial element to any economy, but even more crucial to India due to its recent growth in the ecommerce market. Indications show that the logistics sector is aiming towards a CAGR 14.8%, reaching a market size of $400 billion by FY2026, an incredible growth margin from the $230 billion reported in FY2022. Logistics centers are also a central part of the export process, and with the recent increase in exports over the last 5 years in India, logistic services are demanded even more. From 2016 to 2021, exports have changed by $130 billion USD, from $273 billion to $403 billion, with Refined Petroleum, Diamonds, Packaged Medicaments, Jewelry, and Rice being the top exports. 

MSME’s are the backbone of India’s economy, providing about 30% of the country’s GDP, which shows how important they are to the country as a whole. The Government of India understands their importance and takes steps to ensure the ease of doing business for MSME’s in India. With MBE’s skillset in the ecommerce and logistics services, India is an incredible and opportunistic place for a future entrepreneur to grow an MBE Franchise. Contact us to learn more about the Master Franchise Opportunity via Linkedin or our website! 

(Photo: Adobe Stock)

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