Economic Survey: India's e-commerce space may grow 50% in next 5 yrs

As Internet penetration in India is on the rise, the eCommerce sector in the country is likely to witness a growth of over 50 percent in the next 5 years, says the Economic Survey. The government document, however, raised concerns over consumer safeguards and proposed amendments to the Consumer Protection Act.

"India's eCommerce market is expected to grow by more than 50 percent in the next five years," the Economic Survey 2014-15, tabled in Parliament on friday by Finance Minister Arun Jaitley, said.

As per industry body Internet and Mobile Association of India (IAMAI), as of October 2014 India had 278 million internet users. On the hurdles being faced by the sector, the Economic Survey said: "Inventory management, logistics planning and resource availability are important hurdles for online retail in India".

It further said: "Consumer safeguard being another concern for consumers of eCommerce, the government proposes including sufficient provisions in the ongoing amendment to the Consumer Protection Act, 1986." Prime Minister Narendra Modi had set up a Task Force last year to give suggestions to drive up revenues of India Post in with various services including eCommerce.