Online vendors in India have made a substantial impact on employment, generating 15.8 million jobs, including 3.5 million specifically for women, according to a recent report. Released by Commerce and Industry Minister Piyush Goyal, the report titled ‘Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India’ highlights the significant role of e-commerce in driving job creation. Prepared by the Pahle India Foundation (PIF), the report notes that online vendors employ, on average, 54% more people than offline vendors and nearly double the number of female employees.
The study reveals that e-commerce is not only contributing to job creation but is also expanding into new areas, including Tier 3 cities, which have shown a higher rate of spending on online shopping compared to larger urban centers. This shift underscores the growing reach of e-commerce across various regions, making it an essential factor in India’s evolving retail landscape. The report highlights that each e-commerce vendor employs about 9 people, with 2 being women, whereas offline vendors employ about 6 people, including only 1 woman.
In terms of business performance, the report shows a marked improvement for online vendors. Approximately 60% of vendors reported increased sales, and 52% saw higher profits since they began selling online. Over two-thirds of the vendors experienced an increase in both sales value and profits in the past year. This suggests that e-commerce has become a vital driver of growth for businesses, contributing positively to their financial performance.
Consumer behavior has also been transformed by e-commerce, with more than 50% of survey respondents spending over two hours a week on online platforms and 70% making online purchases in the past month. The report advocates for offline vendors to embrace e-commerce to benefit from these trends. Government initiatives aimed at expanding digital infrastructure are recognized for supporting this growth. Overall, the findings emphasize e-commerce’s transformative impact on employment and consumer habits, reinforcing its importance in India’s economic landscape.
