E-commerce has significantly reshaped India’s economic landscape, generating approximately 16 million jobs across various roles such as marketing, management, customer service, warehousing logistics, and delivery. According to a report released by The Pahle India Foundation (PIF) titled Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India, e-commerce vendors employ 54% more people and nearly twice as many female employees compared to their offline counterparts. This underscores a notable boost in employment opportunities and gender inclusivity within the sector.
Launched by Piyush Goyal, Union Minister for Commerce and Industry, the report provides a detailed analysis of e-commerce’s transformative role in India’s economy, with a focus on job creation and consumer benefits. Piyush Goyal, Hon’ble Minister of Commerce and Industry iterated the need to look at the medium-to-long term socio-economic impact of the growth of eCommerce. He said, “I don’t deny that e-commerce has a role, but we have to think carefully what that role is, and how it can evolve in an organised fashion.”
The study reveals that management roles within e-commerce have seen a 42% net increase in employment, while marketing roles have grown by 39%. Additionally, 73% of vendors report that management tasks have become more digitally enabled, and 63% have outsourced management functions. In other areas such as HR, Administration, and Merchandising, at least 25% of vendors have outsourced tasks, highlighting the sector’s broader impact on employment patterns through indirect job creation and technological advancement.
“E-commerce has revolutionised India’s retail landscape. Our study provides a data-driven understanding of its impact on employment and consumer welfare, offering invaluable insights for policymakers and industry stakeholders,” Rajiv Kumar, Chairman of PIF and former Vice Chairman of NITI Aayog, said.
Offline vendors, by contrast, have only 41% engaging in digital upskilling or creating new direct or indirect employment opportunities. This disparity underscores the transformative effect of e-commerce on employment structures.
Consumer benefits have also been significantly influenced by e-commerce. On average, 30% of respondents in Tier 1 and Tier 2 cities spend more than ₹1000 per month on online shopping, with 40% of Tier 3 city respondents reporting similar spending patterns. Notably, 60% of vendors in smaller cities have experienced increased sales since moving online, and 71% of these vendors have seen a rise in online sales value and profits in the past year.
Convenience is identified as the primary factor driving consumer welfare gains from e-commerce. Consumers are attracted to the ease of online shopping, product variety, and access rather than just low prices. Despite these benefits, there is a call for improvements in grievance redressal, as many consumers feel that this aspect needs significant enhancement.
The Pahle India Foundation’s study underscores that e-commerce is playing a crucial role in shaping employment and consumer behaviour in India. By creating job opportunities, particularly for women, and enhancing consumer experiences through convenience and variety, e-commerce is driving a dynamic and robust retail environment. The findings provide valuable insights for policymakers and industry stakeholders aiming to support sustainable growth in India’s digital economy.