It might be more than interesting to invest in the Indian market right now. BI Intelligence reveals a study which shows that Indian shoppers are turning more and more to cross-border e-commerce sites thanks to India’s digital revolution.
In 2016, Indians spent around $8.7 billion on international Web sites, which represent a 6.7% growth compared to 2015. The government itself is taking measures to improve digital use. In this article, we’ll explore why India could be a great possibility for your e-commerce.
India’s Digital Revolution: What are the Measures the Government is taking?
In 2009, the government was launching the ambitious Aadhaar project. This technology was aimed to provide a digital identity to everyone. The recognition has revolutionized identification issues in India. Indeed, half of the population didn’t have a birth certificate, and couldn’t be a part of the economy as individual.
After that, India launched its Unified Payments Interface in 2016. The UPI is a payment system which allows either the payer or the payee to send a request for payment approval. You can directly transfer money from a bank account to another. Transaction costs are close to zero as you just need a mobile phone and a personal identification number to proceed. The transaction takes only a few seconds, no matter if they aren’t from the same bank.
The country has just introduced India Stack. India Stack is a secure system for people to store and share personal data. It can be contact details, bank statements as medical records.
Based on a thumbprint or a retina scan recognition, the user is able to share his information with anyone. This measure is going to revolutionize procedure: you are now capable to prove your identity, or share information within a few minutes.
Digital India: Will India become the Model for Western Nations?
India has more internet users than any other country. Two-thirds of its population are equipped and with more yet to come. The government makes everything extend to digital use. In the context of the “Digital Village initiative” they announced that they’ll provide free Wi-Fi to 1000 villages within the next six months.
India is now betting on a cashless society. By eliminating 500 and 100 rupee notes, the government will initiate the boom of digital currency. According to iSpirt cofounder Sharad Sharma “By 2020, my view is that India will make debit cards, ATM machines and POS machines irrelevant. They will become redundant, as every Indian citizen can just use their thumb.”
For Nobel Prizewinning economist Joseph Stiglitz it represents huge stakes for a country to digitalise its payment. “I believe very strongly that countries like the United States could and should move to a digital currency … there are important issues of privacy cyber-security, but it would certainly have big advantages.”
Now it’s the time if you have ever considered to investing in India. The number of e-shoppers should considerably grow this year. According to Worldpay projections, India is about to become the world’s second largest e-commerce market. By 2034, helped by the millennial generation, a massive internet penetration and the use of the mobile. India is the world’s biggest consumer of mobile phones. Data plans are cheaper than China and United States which allow them to use m-mobile more often. The market is supposed to reach USD 63.7 billion by 2020.
These innovations are making India a territory full of opportunities. India is ahead by revolutionizing digital and should be taken as an example. US e-commerce websites are getting nearly half of the overseas e-commerce sales coming from India.
The amount of people with access to the internet is rising while everything is made for users to exchange information and pay as quickly as possible. With India becoming an e-commerce powerhouse, it might be a great occasion to think about launching your own cross-border e-commerce on the Indian market as soon as it opens up.
Are you ready to invest this market? Is India ready for foreign e-commerce stores?