Bank of America $BAC Merrill Lynch has raised its targets for gross merchandise value (GMV) of the Indian e-commerce industry over the coming years—just six months after it released its earlier estimate.
The firm now expects the combined GMV—total value of goods sold through an online marketplace—of Indian e-commerce companies at $220 billion (Rs1,457,060 crore) by 2025, against its May estimate of $200 billion.
The combined GMV of Indian online retailers is currently at just $11 billion.
The revision in estimates, published in the firm’s Nov. 10 report, Clash of the Titans, is due to three main factors: “Improving telecom infrastructure,” “faster adoption of online services due to increasing awareness” and “better variety of convenience.”
The chart below shows old and new estimates for annual GMV in India’s e-commerce sector over the next 10 years:
The following two charts and table explain why Bank of America Merrill Lynch sees Indian e-commerce growing 20 times in the next 10 years:
The number of downloads for mobile applications of most e-commerce companies in India has risen over the last year. The table below shows the latest download numbers of mobile apps for leading companies in the sector on Google $GOOGL Playstore, in comparison to a year ago.
The data was compiled by BofA Merrill Lynch Global Research.
