India's e-commerce to reach $550 billion by 2035 - Anarock
20 February 2025, Mumbai
India’s e-commerce sector is projected to hit $550 billion by 2035, growing at a 15 per cent CAGR, according to a joint Anarock - ETRetail report unveiled at The Economic Times Great India Retail Summit 2025 in Mumbai.
The sector, valued at $125 billion in 2024, is expected to reach $345 billion by 2030, driven by rising internet penetration, smartphone adoption, digital payments, and government initiatives like ‘Digital India’.
E-commerce is expanding beyond metros, with Tier 2 and 3 cities now accounting for 56 per cent of online shoppers, up from 46 per cent in FY2020.
This share is projected to hit 64 per cent by FY2030, according to Anuj Kejriwal, CEO & MD, Anarock Retail. Meanwhile, India’s retail market is set to triple from 2019, reaching $2.5 trillion by 2035, fueled by urbanization, rising incomes, and a growing middle class.
Mall leasing has rebounded post-pandemic, with vacancy rates dropping to 8.1 per cent in 2024 from 15.4 per cent in 2019.
However, supply remains tight new mall additions in the top seven cities totaled just 1 million sq ft in 2024, while absorption hit 6 million sq ft. The demand surge is led by experiential retail, with apparel and F&B driving 45 per cent of footfall.
Retailers are expanding aggressively in Tier 2 and 3 cities, which will contribute over 26 million sq ft of new mall space by 2030, signaling a major shift in India’s retail sector.
