Retail in Asia

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India’s e-commerce firms to invest $8 bn in infrastructure, logistics

Retail in Asia India Ecommerce Box

E-commerce companies in India are expected to invest close to $8 billion in logistics, infrastructure, and warehousing in the next few years, a new study released by The Associated Chambers of commerce & Industry of India (ASSOCHAM) and PwC reveals.

The e-commerce market in India itself is expected to grow to $80 billion by 2020. Currently valued at $25 billion, it has been growing at a compounded annual growth rate of about 35-40 per cent each year.

As it gathers more momentum and moves to second and third tier cities, the study is projecting an increased demand for air cargo connectivity to smaller towns. It said the industry would invest in about $8 billion by 2025.

Currently India operates at a very low level of air cargo penetration characterised by only a few airports equipped to handle large volumes of express delivery parcels.

“Innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. The companies will need to invest in automation, while utilising existing resources well,” ASSOCHAM Secretary General D S Rawat said in a news release.

ASSOCHAM said the growth of the e-commerce industry in the country has a huge potential in the country translating into beneficial effects for the manufacturing industry, infrastructure, and jobs.