Small cities now account for over 60% of India’s e-commerce orders as the market grows toward $250B by 2030

by | Apr 17, 2026 | E-commerce News

India's e-commerce market grew at a 23% compound annual rate between 2020 and 2025, the fastest of any large economy, with smaller cities and towns now generating more than 60% of online orders as improved 5G access, UPI digital payments, and better road infrastructure close the gap with major metros. Only 30% of Indians shopped online in 2025 compared to 92% in China and 74% in the U.S., suggesting significant room for growth, with Deloitte forecasting the market will reach $250B by 2030 and the number of online shoppers in smaller cities roughly doubling by then. Walmart-owned Flipkart holds an estimated 48% of the Indian e-commerce market while Amazon holds 30-35%, with both investing heavily in ultra-fast delivery as quick commerce emerges as the primary growth vehicle in smaller cities.

Paul Drecksler is the founder and editor of Shopifreaks E-commerce Newsletter, covering the most important stories in e-commerce.

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