Impact of E-Commerce on Agri Business in India

E-commerce is a major impact on how goods are bought and sold in agricultural markets. Agriculture is considered the backbone of the Indian economy. Internet and e-commerce technologies have rapidly penetrated the agriculture sector as marketing, management, service, and coordination tool. E-commerce provides an opportunity to streamline the agricultural value chain and Reduce Inefficiencies in the distribution of agricultural produce. It represents a new approach for farmers to sell their agricultural produce to an array of buyers, including Agribusinesses, retailers, restaurants, and customers. E-commerce has transformed the way Agribusiness is done in India. E-commerce is India’s fastest-growing market with an annual multifaceted growth rate of 52% to touch USD 36.7 billion by 2020. The number of internet users in India has registered an annual growth of 18 percent and is estimated at 566 million as of December 2018 and estimates that the number of internet users will reach 627 million by the end of 2019 India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by e-commerce. India’s E-commerce revenue is expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an annual rate of 51 percent, the highest in the world. This paper provides some background, some current facts, and some interpretation of the impact of e-commerce in the agribusiness sector of India.