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E-Commerce in Rural India and Challenges

Smt. Manda Savithri

2026 · DOI: 10.37648/ijps.v21i02.048
International journal of professional studies · 0 Citations

TLDR

E-commerce in rural India is experiencing a boom, but it is also confronted with challenges such as inadequate infrastructure, low digital literacy, a lack of trust in online transactions, language barriers, and the need to adapt platforms to meet local needs.

Abstract

E-commerce in rural India is experiencing a boom, which can be attributed to the increasing use of internet and

smartphones as well as the digital initiatives undertaken by the government. This growth has created new markets for

local artisans and farmers, but it is also confronted with challenges such as inadequate infrastructure (roads, power),

low digital literacy, a lack of trust in online transactions (which favours cash on delivery), language barriers, and the

need to adapt platforms to meet local needs. In order to fully unlock its potential, it is necessary to place an emphasis

on digital skill training, localized content, and improved logistics. E-commerce, or the buying and selling of products

and services on the Internet, is fast changing India's economy, especially in the country's rural regions. With a focus

on the significance of rising internet and smartphone penetration in opening up access to online marketplaces, this

study delves into the main forces propelling India's booming e-commerce sector. This research, which relies on

secondary sources including publications, journals, reports, and conference proceedings, shows that e-commerce is

one of India's most dynamic and promising industries, with tremendous room for expansion. There has been a marked

increase in investment in India's e-commerce sector, and experts believe that this trend will continue. The tendency is

further highlighted in the joint study by ASSOCHAM and Forrester, which predicts that online sales would increase

from 30billionin2016to30 billion in 2016 to 120 billion in 2020, a 51% yearly growth rate. Rising demand for digital services, shifting

consumer tastes, and government programs to bring internet access to underserved regions are all factors propelling

this growth.