Betting big on e-commerce will boost jobs, consumer benefits: Pahle India Foundation

New Delhi, August 22, 2024 – Pahle India Foundation (PIF), a leading Delhi-based policy research institute, today launched its comprehensive study – Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India.

The report, released by Shri Piyush Goyal, Union Minister for Commerce and Industry, offers a deep dive into the transformative role of e-Commerce in the Indian economy, examining its impact on job creation and consumer benefits. Mr Saurabh Garg, Secretary, MoSPI, Government of India was also present at the launch.

A lively discussion followed the release of the report over two sessions, the first chaired by Dr. Rajiv Kumar, Chairman of PIF and former Vice Chairman of NITI Aayog, and the second by Mr. Ashish Kumar, Distinguished Fellow, PIF, and former Director General of the Statistics Office, GoI. Contributions from a distinguished panel of experts enriched the discussion.

Setting the tone for the interaction, Dr Rajiv Kumar said: “e-Commerce has revolutionized India’s retail landscape. Our study provides a data-driven understanding of its impact on employment and consumer welfare, offering invaluable insights for policymakers and industry stakeholders.”

Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry iterated the need to look at the medium-to-long term socio-economic impact of the growth of eCommerce. He said, “I don’t deny that e-commerce has a role, but we have to think carefully what that role is, and how it can evolve in an organised fashion.”

Shri Saurabh Garg, Hon’ble Secretary, Ministry of Statistics and Prgramme Initiatives, lauded the government’s initiatives expanding digital public infrastructure that have enabled the smooth expansion of e-commerce.

The study’s key findings highlight the significant contribution of e-Commerce to employment, with e-commerce vendors found to have generated 16 million jobs. This employment was also distributed among various roles across skill levels, from marketing to management, customer service and operations, and warehousing logistics, and delivery. e-Commerce was also found to create almost twice the number of jobs for female workers compared to other retail segments.  

The impact of e-Commerce is also significant for vendors operating in smaller cities. According to the study, 60% of vendors in smaller cities reported increased sales and profits since they began selling online, with more than two-thirds of these experiencing an increase in online sales value and profits in the past year alone. This number was even higher in Tier 3 markets, with 71% of vendors reporting additional sales in their businesses.

The study also delves into how e-Commerce has reshaped consumer behaviour, noting that consumers have shifted to online shopping for reasons that include convenience, product variety, and access. A highly engaged consumer base is indicated by the fact that more than 50% of all respondents to the survey spent more than two hours on e-Commerce platforms a week, and that 70% made a purchase via e-Commerce in the last month alone.

Many of these findings indicate that, on balance, e-Commerce is transforming consumer behaviour and employment patterns in India, leading to a more robust yet dynamic retail environment.

Pahle India Foundation’s research aims to inform policy decisions and foster sustainable growth within the e-Commerce sector. By providing evidence-based analysis, the Foundation seeks to contribute to a thriving digital economy that benefits both businesses and consumers.

About Pahle India Foundation

Established in 2013, Pahle India Foundation is a non-profit think tank dedicated to policy-focused research. The foundation has been at the forefront of analysing critical issues, including e-Commerce, and has significantly contributed to policy formulation in India.