FDI in Indian B2C e-commerce: A study of its consequences and implementation strategy

Abstract

E-commerce in the recent times has been growing rapidly across the world. As per the report of 2013’s Digital–Commerce of IAMAI-IMRB e-commerce industry in India has grown from US$ 3.8 bn to US$ 9.5 bn during 2009 to 2012. By the year 2013, the business is likely to achieve US$12.6 bn, with a yearly development of 34%. Electronic commerce, often referred as E-commerce or eCommerce, is trading in products or services using computer networks as Internet. E-commerce implies dealing or buying of merchandise led over system of Personal Computers or TV channels by techniques particularly intended for the same reason. Transactions related to E-commerce can be amongst businesses, Individuals and organizations. There are various sorts of transactions that happen online extending from sale of apparel, electronics, food, travel tickets, hotel bookings etc. Starting the year 2009, Indian e-commerce industry has gained momentum and has been seeing a sturdy growth of over 30 per cent every year. The overall size of the ecommerce industry in India was predicted as 400 billion by 2013. According to Industry studies conducted by IAMA, it is seen that the e-commerce industry is mainly consisting of the online travel booking which contributes to 70% of the market share. As far as the growth is concerned, the e-retail segment has its nose ahead. It is now one of the fastest growing ecommerce segment which can be seen from its growth which went to 18 % from 10 % during 2009-2013.