India's digital commerce growth to witness $320-340 bn surge, fueled by ONDC: McKinsey

The value of digital commerce is likely to see a surge of $320-$340 billion by 2030, driven by government-backed Open Network for Digital Commerce (ONDC), a McKinsey & Company study revealed.

According to the report, digital commerce in fashion and lifestyle is projected to climb from $11-$13 billion in 2022 to $80-82 billion in 2030. The grocery sector is expected to grow from $4-5 billion in 2022 to $50-55 billion in 2030.

The electronics and durables category may see a threefold rise from $24-26 billion in 20222 to $70-72 billion in 2030.

Notably, fashion & lifestyle, electronics & durables, and grocery segments account for 62% of total digital commerce in 2030.

McKinsey projected that digital commerce of the entertainment sector, including gaming, filming, and television, will grow six times, hitting $17-19 billion.

According to the study, India has drawn interest as a business hub across the globe.

Between 2021 and 2023, 984 internal firms registered to operate in India, up from 320 between 2019 and 2021. Currently, India has 1,5000 global capability centres, with 250 added in the past 3-5 years. Further, it stated that the average spending power of Indians has gone up from $271 in 2012 to $705 in 2023. However, despite the increase in spending, 95% of the customers have less than $2,000 in financial assets.