Online Markets and the Transformation of Consumer Behaviour in India: Trends, Drivers, and Implications

Abstract

India’s e-commerce landscape has grown rapidly, from USD 38.5 billion in 2017 to USD 147.3 billion in 2024, with projections of USD 200 billion by 2026 and USD 350 billion by 2030 (IBEF, 2025; Mordor Intelligence, 2025). This study synthesizes secondary data from industry reports and literature to examine the drivers of consumer behaviour transformation. Key enablers include smartphone penetration, mobile-first commerce, Unified Payments Interface (UPI) adoption, social commerce, and AI-powered personalization. The analysis draws on the Technology Acceptance Model, Diffusion of Innovation, and trust-based adoption frameworks (Rogers, 2003; Venkatesh & Davis, 2000) to explain how these factors interact. Findings highlight significant generational differences, rapid rural adoption via mobile platforms, and the influence of peer networks on trust formation. Policy implications include improving rural digital infrastructure, enhancing cybersecurity, and promoting sustainable logistics. The study offers insights f or businesses, policymakers, and researchers aiming to leverage India’s unique digital ecosystem for inclusive and sustained growth.