Home / Knowledge / News / Information Technology / E-com can generate 12 mn jobs in India
E-com can generate 12 mn jobs in India
28
Jul '16
E-commerce has the potential to add 12 million of the 80 million new jobs that India needs over the next decade, according to a HSBC Global Research report, India: More jobs per click - The employment potential of e-commerce.

Nearly three-fourths of the new jobs in the e-commerce sector are expected to be in broad supply chain activities -- logistics, warehousing and courier – while a little less than one third, that is, 30% would be in customer care, information technology and management, it said.

However, the country may still fall short by 24 million or 30% in achieving the required 80 million job target, the report cautioned.

Half of the expected shortfall could be mitigated, if enabling factors work to the advantage of the e-commerce ecosystem in the country, it said.

The e-commerce business in India is already showing the potential to support the projected growth for new job opportunities. India, according to this report, has 330 million internet subscribers, almost all of which, or around 94%, are wireless. This means mobile phone-driven e-commerce activities will be a major force for growth in the near future.

At present, there are one billion mobile phone subscribers covering 75% of the current population, one billion biometric identities (Aadhaar cards), and 220 million new bank accounts, the report noted.

The report counts on the country's demographics, particularly the fact that the generation born after 1990, or the start of the internet age, accounts for one fourth of the population now and is expected to swell to 45% by 2025.

There is also immense potential in the retail sector, which could be brought under the organised retail framework, creating sufficient headroom for growth in e-commerce. At present, organised retail accounts for only 8% of the overall retail pie in India against China's 25% and 85% in the United States.

E-commerce as an element of overall consumption in India is still less than 2% of the total figure, compared to14% in China, indicating a magnitude of catching up India needs to do to realise its job potential.

The report recommended setting up of digital market places in rural areas, which could further improve job opportunities in businesses related to e-commerce.

There are working models that India can adopt. For instance, Taobao villages in China created by internet giant Alibaba. From 20 such villages in 2013, they have grown to 780 by 2015. These digital villages are spread over 17 provinces and cover more than 200,000 active online shops, the report said.

“In India, the potential for e-commerce in rural areas is promising given similar infrastructure inadequacies as in China. The market potential is sizeable as well. For example, more than 800 million people live in 640 villages (in India),” it said.

The biggest challenge for this rural transformation, however, is Internet penetration in the villages. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 24th Apr 2017

ColDesi launches latest direct to garment printer

ColDesi, a pioneer in the direct to garment printer business, has...

Textiles | On 24th Apr 2017

US’ textile manufacturers applaud Buy American order

US' National Council of Textile Organisations has favoured President...

Courtesy: NASA/JPL-Caltech

Textiles | On 24th Apr 2017

NASA designing advanced woven metal fabrics for space

Scientists at NASA are designing advanced woven metal fabrics for a...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search