Indian digital commerce mkt to touch $128 bn by 2017: Study

Country's digital commerce market is likely to touch USD 128 billion in 2017 from the current level of USD 42 billion on the back of higher mobile and Internet penetration and mobile-commerce sales, says a study.

"Increasing mobile and Internet penetration, m-commerce sales, advanced shipping and payment options, exciting discounts, and push into new international markets by e-businesses are the major drivers of this unprecedented growth," a joint study by Assocham-Deloitte said.

The Indian digital commerce market is expected to reach USD 128 billion in 2017 from the current level of USD 42 billion, it added.

However, Assocham Secretary General D S Rawat said the supply chain and logistics in e-commerce business are highly complex to manage in a vast country like India where infrastructure is not well-developed to reach every remote and rural area.

"The taxation policies for the e-businesses are not well- defined depending on different business models and transaction type. The complexity has further amplified with transactions happening across borders for online selling of goods and services," Rawat said.

The e-commerce companies are building communities on social media networks to better understand customer needs and drive effective marketing strategies, the study observed.

It also said, the government's ambitious 'Digital India' project that aims to offer a one-stop shop for government services will further bolster the sector by introducing internet and broadband to remote corners of the country and increase trade.

This initiative through a targeted investment of nearly USD 17 billion will transform India into a connected economy, attract investment in electronics manufacturing and create millions of jobs, said Rawat.

The study further pointed out that dedicated e-commerce laws are required to address issues in the sector's legal and regulatory framework and banks must play a leading role as 'facilitators' by offering cost effective cash management solutions, secure payment gateways and other relevant banking services.