Ecomm Ex­pan­sion in In­dia will Trig­ger Big In­no­va­tions, says Study

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New Delhi: Ex­pan­sion of In­dia’s ecom­merce in­dus­try will trig­ger in­no­va­tion in pay­ments and de­liv­ery mod­els as well as en­able bet­ter use of tech­nol­ogy such as wear­ables, drones and ar­ti­fi­cial in­tel­li­gence, a study by Con­fed­er­a­tion of In­dian In­dus­try and Deloitte has said.

In the re­port ti­tled ‘e-Com­merce in In­dia: A Game Changer for the Econ­omy’, CII di­rec­tor gen­eral Chan­dra­jit Ban­er­jee said the ecom­merce in­dus­try has been di­rectly im­pact­ing mi­cro, small and medium en­ter­prises and has a favourable cas­cad­ing ef­fect on other in­dus­tries.

“It is help­ing con­nect small mer­chants with cus­tomers across In­dia. Long-term im­pact of this on the econ­omy would be in­crease in em­ploy­ment, growth in ex­port rev­enue, bet­ter prod­ucts and ser­vices to cus­tomers and in­crease in tax col­lec­tion by ex­che­quers,” the re­port said.

In­creas­ing in­ter­net and smart­phone pen­e­tra­tion are ex­pected to boost ex­pan­sion of ecom­merce sec­tor in tier-II and tier-III cities, the re­port said. It said the big­gest chal­lenges to the in­dus­try’s growth have sur­faced pri­mar­ily in ar­eas of tax­a­tion, lo­gis­tics, pay­ments, in­ter­net pen­e­tra­tion and skilled man­power.

“Go­ing for­ward, the most im­por­tant thing is the col­lab­o­ra­tion be­tween the govern­ment, in­dus­try and academia to im­prove ef­fi­cien­cies in ecom­merce,” said Viresh Oberoi co-chair­man of CII’s na­tional com­mit­tee on ecom­merce.

“We are en­gag­ing with the govern­ment in states and at the Cen­tre to help cre­ate an en­abling en­vi­ron­ment for the in­dus­try,” he said.

The num­ber of on­line shop­pers in the country grew 95% be­tween 2013 and 2015, and the num­ber is ex­pected to reach 140 mil­lion by 2018 and 220 mil­lion by 2020, the re­port said. Ac­cord­ing to the re­port, the num­ber of on­line shop­pers in In­dia as a per­cent­age of to­tal in­ter­net users grew to 11% in 2015 from 9% in 2013. It is ex­pected to reach 36% by 2020.

“From an in­vest­ment per­spec­tive, con­sid­er­able fund­ing in the e-com­merce ecosys­tem has led to emer­gence of new busi­ness mod­els across B2B, B2C, lo­gis­tics ser­vice providers, pay­ment wal­lets, dig­i­tal ad­ver­tis­ing and an­a­lyt­ics,” Neeraj Jain, part­ner at Deloitte Touche Tohmatsu In­dia LLP said. He said th­ese in­vest­ments have en­abled the ecom­merce com­pa­nies to lever­age lead­ing tech­nol­ogy and re­lated prac­tices to reach out to mil­lions of new on­line cus­tomers by de­liv­er­ing ser­vices more ef­fec­tively and ef­fi­ciently.

The re­port said there is a much greater scope for ecom­merce play­ers to lever­age tech­nol­ogy in a big way, es­pe­cially the uni­fied pay­ments in­ter­face plat­form that can make pay­ment modes such as cash on de­liv­ery seam­less.

An­other area where tech­nol­ogy can work is the way in which goods are de­liv­ered to the user.

In­creas­ing in­ter­net and smart­phone pen­e­tra­tion are ex­pected to boost ex­pan­sion of ecom­merce sec­tor in tier-II and tier-III cities across the country

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