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According to the Global Payments Report by Worldpay FIS, India’s e-commerce market is projected to post impressive gains and grow at 18 percent annually through 2025.

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According to the Global Payments Report by Worldpay FIS, India’s e-commerce market is projected to post impressive gains and grow at 18 percent annually through 2025.

Which of the following statements are true regarding the growth of e-commerce industry in India?

A. E-commerce order volume growth in FY22 was driven mainly by consumers from tier-II and tier-III cities in the last two years.
B. Tier-I cities indicated a comparatively slower order volume growth rate compared to tier-II and tier-III cities.
C. Fiscal support during the pandemic helped boost e-commerce penetration in rural areas, likely by increasing consumption.

Options:

  1. A and B only
  2. C only
  3. A, B, and C
  4. None of the above

1 Answer

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Answer: (3) A, B, and C

Explanation:

Let's analyze each statement:

A. E-commerce order volume growth in FY22 was driven mainly by consumers from tier-II and tier-III cities in the last two years.

  • Correct. There has been a significant shift in e-commerce growth driven by consumers in tier-II and tier-III cities in India. The penetration of the internet and digital payments in smaller cities has fueled this growth.

B. Tier-I cities indicated a comparatively slower order volume growth rate compared to tier-II and tier-III cities.

  • Correct. While tier-I cities remain important for e-commerce, the growth rates in these cities have been relatively slower due to higher saturation levels. In contrast, tier-II and tier-III cities have seen rapid growth as e-commerce spreads to less urbanized areas.

C. Fiscal support during the pandemic helped boost e-commerce penetration in rural areas, likely by increasing consumption.

  • Correct. The pandemic led to various fiscal measures, including direct benefit transfers and other economic stimuli, which helped boost consumption in rural areas. This, in turn, aided the penetration of e-commerce into these regions as more consumers turned to online platforms for their needs.

Conclusion:

All three statements, A, B, and C, are correct. Therefore, the correct answer is (3) A, B, and C.

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