E-Paper
Powering jobs, inclusion and economic growth
This article is authored by Rajneesh Kumar, chief corporate affairs officer, Flipkart Group.
In the town of Bhadohi in Uttar Pradesh, Sonali, a rural artisan, uses her skills to create jute bags as part of a collective that reaches customers through an e-commerce platform. Through this digital access, she is able to earn a steady income, putting her craft to purposeful work.
Meanwhile, on the outskirts of Bengaluru, Rashmi is a familiar sight as she swiftly navigates the lanes on her scooter, delivering shipments to households. A mother of two, Rashmi once struggled to find flexible work opportunities. Now, thanks to the rise of e-commerce, she enjoys financial independence while balancing her caregiving responsibilities.
Sonali and Rashmi’s stories are just a sample of the quiet change e-commerce is ushering in across India’s cities and in its hinterlands as the sector emerges as a significant driver of economic empowerment. Over the last decade and a half, the sector has evolved into an engine of India’s growth by enabling newer markets for products, creating jobs and fostering entrepreneurship.
Valued at $147.3 billion in 2024, the e-commerce industry is projected to grow at a CAGR of 18.7% through 2028 making it a critical enabler of India’s economic progress.
Micro, small, and medium enterprises (MSMEs), long considered the backbone of India’s economy, have found a powerful ally in e-commerce. By offering digital storefronts, logistics support, and access to a nationwide customer base, e-commerce platforms have democratised market access for small sellers.
Previously constrained by geographic and infrastructural limitations, MSMEs can now reach consumers across India through online marketplaces. Targeted initiatives by e-commerce platforms also focus on onboarding artisans, weavers, women entrepreneurs, and self-help groups, enabling them to scale without large upfront investments.
A study conducted by the Indian Council for Research on International Economic Relations (ICRIER) found over 90% of MSMEs saw growth in sales and profit margins after e-commerce integration, with the trend being more pronounced for micro and small enterprises.
The most visible impact of e-commerce, though, has been in generating employment. From warehouse operators and delivery executives to digital marketers and data analysts, e-commerce has catalysed the creation of millions of direct and indirect jobs across white-collar and blue-collar segments. Additionally, the rise of quick commerce has added further impetus to job creation, multiplying the availability of opportunities.
E-commerce players have built logistics networks that extend into remote corners of the country, creating employment opportunities even in tier-2 and tier-3 cities. The gig economy has flourished alongside, powered by the growing demand for flexible roles in last-mile delivery and customer service.
Beyond direct jobs, the multiplier effect is evident in allied industries – packaging, logistics, IT services, and financial technology. E-commerce’s influence is shaping a new economic ecosystem that is agile, tech-enabled, and employment-intensive.
As per media report, in the last festive season, e-commerce platforms notched up an impressive ₹1 lakh crore in sales with a downstream impact on a number of industries, such as fashion, electronics and décor, and on the economy as a whole.
The fast-paced evolution of e-commerce demands a skilled workforce that can adapt to emerging technologies such as AI and dynamic market needs. Recognizing this, forward-looking e-commerce players have partnered with academic institutions to invest in capability building by nurturing job-ready talent.
These collaborations have helped to bridge the gap between academic learning and industry requirements, ensuring that the workforce is equipped with the necessary skills to thrive in the digital economy.
Through internships for undergraduate students in supply chain operations, early exposure to the intricacies of e-commerce logistics, and access to e-learning platforms for training in warehouse and supply chain management, e-commerce players have created a robust talent pipeline to meet industry needs.
E-commerce has been a unifying force, bridging the urban rural divide and accelerating India’s progress to a Viksit Bharat. Higher smartphone penetration, improved connectivity and ease of digital payments have extended e-commerce to consumers in tier 2 and tier 3 cities and rural areas.
This expansion into smaller cities and rural pockets has helped in local development and created jobs locally, enabling people to stay close to their homes, stemming the tide of migration to cities in search of employment.
Almost 60% of new e-commerce customers since 2020 are from tier 3 and smaller cities. The seller landscape is also evolving, with over 60% of new sellers onboarded since 2021 coming from tier 2 and smaller cities, according to a Bain & Company report.
Of particular note is that the impact in smaller cities is not limited to consumption. These regions are also witnessing a rise in local entrepreneurship, with individuals setting up online stores, acting as local delivery partners, or establishing rural logistics hubs.
The corner kirana store is also joining the digital revolution by partnering with e-commerce platforms for hyperlocal delivery. This has enabled them to add new revenue streams and stay relevant to changing consumer preferences.
E-commerce in India is now more than just digital convenience – it is a key enabler of economic growth with the ripple effects extending to the corners of Bharat. It has redefined employment, empowered MSMEs, and created jobs and businesses in previously underserved regions. It has become a transformative force, seamlessly blending innovation through AI, meaningful inclusivity, and opportunities to redefine India's economic trajectory and societal landscape.
This article is authored by Rajneesh Kumar, chief corporate affairs officer, Flipkart Group.
