Brexit might have been an economic earthquake that sent shockwaves across the world, but to many, Britain’s decision to leave the EU could be seen as a positive situation for India. It’s thought that “it would be in Europe’s interest to develop India as a strong trade and strategic partner,” and that Britain itself will try to provide “much bigger incentives in terms of tax breaks, lesser regulation and other financial incentives” to India.
In fact, India’s progression from a developing country into one of the world’s powerhouse economies is a real testament to perseverance. In 1991, India was a member of the G77 group of developing countries and took 40% of the funds of the International Development Association (IDA). Now, however, India is a solid member of the G20 and is approaching a gross national income of around US $8 trillion, according to the World Bank. Rags to riches feels like quite an understatement.
So what’s the reason for this turnaround exactly? India’s manufacturing industry is rock solid, and its retail sector has recently been given a massive boost courtesy of retail chain Forever 21, who will soon begin selling both online and offline in India. However, these areas notwithstanding, it is India’s e-commerce sector that is said to be the cause for the country’s rise in the ranks of the world’s most powerful nations.
According to new studies, e-commerce in India is projected to make a gargantuan jump from $30 billion in 2016 to $120 billion in 2020. A $90 billion leap in only four years might be scoffed at, but India has every reason to sit back and watch this prediction unfurl. Indian e-commerce has been growing rapidly at an annual rate of 51% – leaps and bounds ahead of some of its closest geographical rivals in China (18%), Japan (11%) and South Korea (10%).
With those figures to gawp at, it should come as no surprise that hosting companies are keen to be a part of this business boom, as the .in CC TLD (country code top-level domain) for businesses in India is being given new life. Despite existing since 1989, the CC TLD had a slow start in the 90s, with registrations under 10,000, but due to a change in registration rules around 2005, the domain shot up in numbers, with over 2 million registrations reported in March 2016.
For any online business in this fast-moving market, the .in domain is well worth a look, as it’s becoming associated with better SEO results in India , as well as a chance to bolster local brand awareness. With competition no doubt beginning to heat up, anything to help you stand out should be grasped tightly.
As for the reasons behind the exponential growth of e-commerce, it could simply be down to a youthful tech-savvy population. 75% of internet users are in the 15-34 age bracket, and India has one of the youngest demographics in the world. In essence, young people who have a familiarity with the internet, as well as a desire to spend online, means that the $120 billion target for 2020 doesn’t seem at all unrealistic.