Fostered by growing internet penetration and use of smartphones, Indian e-commerce sales are set to increase to 31% to reach $32.70 bn by the end of 2018, according to eMarketer.
The growth can further be attributed to e-commerce players like Flipkart, Amazon and Paytm Mall, which have been investing heavily in the Indian market.
Walmart recently acquired Flipkart in a deal which is being valued around $18bn-20bn.
Meanwhile, Amazon Seller Services, the marketplace unit of the US online retail giant in India, saw a cash infusion of $390m in April, according to documents filed with the Registrar of Companies (RoC)
The research further estimates that by 2022, India’s e-commerce sector will be worth $71.94 bn.
Eric Haggstrom, forecasting analyst at eMarketer, said: “E-commerce is booming in India thanks to increased internet users and cheaper smartphones. In tandem with this shift to online and mobile usage, Flipkart, Amazon and Paytm Mall have been competing fiercely to claim their share of the Indian market.
"All three of these companies are making large investments, which include improved logistics and payment systems, as well as offering deep discounts, which will fuel future growth in the market."