Union Commerce Minister Piyush Goyal released a report by the Pahle India Foundation (PIF), a New Delhi-based policy research institute, revealing that 1.76 million retail enterprises in India are now engaged in e-commerce activities.
According to the report, e-commerce has significantly contributed to employment generation in the country, with online vendors likely creating 15.8 million jobs, including about 3.5 million positions for women. The report, titled “Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India,” highlights that on average, online vendors employ 54% more people and nearly twice as many women compared to offline platforms.
The report also notes that consumers in tier 3 cities tend to spend more than ₹5,000 per month on online shopping, a higher percentage than those in larger cities. E-commerce is increasingly penetrating new markets, including tier 3 cities, where each vendor, on average, employs about nine people, two of whom are women. In contrast, offline vendors typically employ around six people, with only one being female.
The study observed a rise in employment across various skill levels within the e-commerce sector. Vendors reported improved business performance after listing online, including higher sales and profits. Over two-thirds of the online vendors surveyed experienced an increase in sales value and profits over the past year, with 58% seeing growth in both areas. This data supports a strong business case for offline vendors to consider listing on e-commerce platforms or adopting an omni-channel strategy.
At the event, Minister Goyal emphasized that the growth of e-commerce in India should be citizen-centric, ensuring that the benefits are widely distributed across society.
