ISAS South Asia Scan

At rates exceeding 40 per cent per annum, the e-commerce sector in India is among the fastest growing in the world. It has the potential of enabling India to leap-frog from millions of tiny neighbourhood stores to a nationally- and, potentially, globally-connected online market. More importantly, the benefits for consumers and producers could be transformational, bringing millions of tiny enterprises operating in isolated communities into modern connected market-places, offering unprecedented choices to consumer, helping to modernise India’s inefficient logistics sector and encouraging the development of efficient value chains. Nevertheless, the future is also fraught with risks and challenges, including the vulnerability of small manufacturers and retailers, and the prospects of a few major e-commerce companies dominating markets. This issue of Asia Scan inquires into the reasons for the extraordinary growth of e-commerce in India, the challenges and risks that lie ahead, and the role for policymakers and regulators in shaping an efficient, fair and stable transition to the digital marketplace of the future.