E-commerce to grow at 10-15% annually: Jayant Sinha
New Delhi: The e-commerce sector would grow at a rate of 10-15% annually, higher than the gross domestic product (GDP) growth rate, in coming years, minister of state for finance Jayant Sinha said on Monday.
The minister also said that the economy will more than double to $4-5 trillion if it can achieve a sustainable growth rate of 8-9% over the next 10-15 years. “Our hope is we can get to 8 or 9% steady, sustainable GDP growth for the next 10-15 years. If we are able to do that, our $2 trillion economy will become a $4 or USD 5 trillion economy,” he said at an Express Industry Council of India (EICI) conference in New Delhi.
With the growth in the economy, the volume of transactions on the e-commerce platform would also go up “exponentially”, the minister said. “So hopefully it (volume) will not only grow at 8%, but grow 10-15% a year. That’s the addressable market that’s coming your (express industry) way over next 10-15 years. The volume is going to go up dramatically and exponentially,” he said.
Sinha said the government is going to further streamline and digitise e-commerce transactions to make flow of goods easier. “E-commerce is really going to be taking off. Flipkart, Amazon are also transforming the supply chains and the notion of instead of having big malls and people coming and buying things that notion is going to be rapidly replaced by delivery system that we are seeing from Flipkart, Snapdeal, Amazon and so on. So the whole logistics infrastructure, because of e-commerce, is going to change,” he said.
According to a study by Assocham-Deloitte, e-commerce industry is set to cross business worth $16 billion by the end of 2015. The digital commerce market in India has grown steadily from $4.4 billion in 2010 to $13.6 billion in 2014, it said.
Sinha also asked the Express Delivery Services industry to prepare itself for roll out of new indirect tax regime goods and services tax (GST) from April 2016.
Speaking on the occasion, EICI chairman R.K. Saboo said: “The industry is seeking simplification of procedures. We believe the expected GST regulations have the ability to standardise legislations and smoothen out operations.”