Pahle India Foundation (PIF), a Delhi-based policy research institute, has launched a comprehensive study titled “Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India.” The report was released in the presence of Piyush Goyal, the Union Minister for Commerce and Industry, highlighting the transformative role of e-Commerce in the Indian economy, with a focus on its impact on job creation and consumer benefits.
The launch event included two panel discussions chaired by Dr. Rajiv Kumar, Chairman of PIF and former Vice Chairman of NITI Aayog, and Ashish Kumar, Distinguished Fellow at PIF and Former Director General of the Statistics Office, Government of India. During the interaction, Dr. Rajiv Kumar emphasized the revolutionary impact of e-Commerce on India’s retail landscape, noting that the study offers a data-driven understanding of its effects on employment and consumer welfare, which is crucial for policymakers and industry stakeholders.
Union Minister Piyush Goyal acknowledged the challenges that small retailers face due to the growing presence of e-Commerce. He stressed the need for a careful evaluation of the role of e-Commerce, expressing concerns about the potential social disruption that could result from its rapid growth. He stated, “Are we going to cause huge social disruption with this massive growth of e-commerce? I don’t see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern.”He further adds, ‘‘I don’t deny that e-commerce has a role, but we have to think carefully what that role is, and how it can evolve in an organized fashion.’’
Saurabh Garg, Secretary of the Ministry of Statistics and Programme Initiatives, praised the government’s efforts in expanding digital infrastructure, which has facilitated the smooth expansion of e-Commerce.
The report’s key findings highlight the significant contribution of e-Commerce to employment in India, with e-commerce vendors generating 16 million jobs across various roles, including marketing, management, customer service, operations, warehousing, logistics, and delivery. Notably, the report shows that jobs for female workers in e-Commerce have increased at nearly double the rate compared to other retail segments.
Additionally, the report reveals that 60% of vendors in smaller cities have experienced increased sales and profits since transitioning to online platforms, with more than two-thirds reporting growth in online sales value and profits over the past year. This trend was even more pronounced in Tier 3 markets, where 71% of vendors reported additional sales.
The report also explores the impact of e-Commerce on consumer behavior, noting that many consumers have shifted to online shopping due to factors such as convenience, product variety, and access.
The study was conducted through stratified random sampling by Pahle India Foundation in collaboration with a third-party research organization. Established in 2013, PIF is a non-profit think tank dedicated to policy-focused research, playing a significant role in analyzing critical issues, including e-Commerce, and contributing to policy formulation in India.
