ECOMMERCE

Electronic commerce is still in its infancy in India. The growth has been slow and confined to a few major cities. With the 1998 opening of the Internet market, however, a large number of new industries and MNCs have appeared. The major boost in e-commerce is not expected until the year 2003 and beyond. The National Association of Software and Service Companies (NASSCOM) has importuned the Indian government to set up a national Internet exchange. Currently, local Internet traffic goes through the US.(3)

  
                                         Estimated value of Ecommerce in India (30)

In US 41% of the population is online. In contrast , less than 0.5% of the Indian population is online and less than 10% of this group buy products online. Even the most pessimistic forecasts predict at least 23 million users by 2003.If PC sales are any indication then this figure would be easily achieved. In 2002 the PC sales increased by 32% with home PCs accounting for over 65%.

Global internet leaders are attracted by the potential user base. Home PCs account for about 22% of the total PC market which is very encouraging for consumer ecommerce.

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