India's e-commerce sector to grow four-fold to $120 billion by 2020

India's e-commerce sector is expected to generate revenues of $120 billion by 2020, presenting a four-fold expansion from $30 billion at the end of last fiscal, a report said.

The report, prepared by industry body Assocham and market research firm Forrester, bases the forecast on the proportion of young population, relatively better performance of the economy, increasing penetration of the internet and smartphone.

While the present e-commerce base in the country is low compared to that of China, Japan or the US, the rate of growth of the sector is faster compared to other markets, the report points out.

"While in terms of base, India may be lower than China and other giants like Japan, the Indian rate of growth is way ahead of others. Against India's annual expansion of 51 percent, China's e-commerce is growing at 18 per cent, Japan 11 per cent and South Korea 10 per cent," the study noted.

Even among emerging nations, except for China, India, with a larger Internet user base of 400 million in 2016 compared to 210 million in Brazil and 130 million in Russia is at an advantageous position as far as e-commerce is concerned.

About 75 per cent of the country's online users are in the age group of 15-34 years since India is one of the youngest demographies globally.

Branded apparel, accessories, jewellery, gifts, footwear are among the major hits on the e-commerce platforms.

About 60-65 per cent of the country's total e-commerce sales are being generated through smart phones.

To gauge internet participation in the country, the study points out that one out of every 5 online user visits the Indian Railways site.