E-commerce to cross Rs9,000cr by end-FY08

The e-commerce market in the country is expected to be at Rs 9,210 crore by the end of FY08. At the end of FY07, the market size of this segment was estimated to be Rs 7,080 crore and the average rate of growth for the year 2007-08 was projected at 30%, says a survey conducted by the Internet and Mobile Association of India [IAMAI] and IMRB.

Among the various online businesses, the travel segment leads the pack with an expected growth rate of 30% to Rs 7,000 crore by end FY08. For FY07, it was Rs 5,500 crore. This is followed by Online Classifieds, which is expected to reach Rs 820 crore by end FY08. eTailing stood at Rs 850 crore in FY07 and is expected to be a Rs 1,105 crore industry by end FY08. Digital downloads and paid content accounted for the rest.

According to the study, the three major triggers of e-commerce in India were time saving, shopping convenience and the availability of a wide range of products.