IMPACT OF E-COMMERCE ON INDIAN ECONOMY

Report Submitted In Partial

Fulfillment of the Requirements for The Award of The Degree Of

Bachelor of Business Administration

By
SHIVANGI DWIVEDI
Enrollment no. A60006417023
Under the guidance of
DR. MEGHNA GOEL
Assistant Professor

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY MADHYA PRADESH
June 2018

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 ACKNOWLEDGEMENT

A Project usually falls short of its expectations unless guided by the right person at the right
time. Success of a project is an outcome of sincere efforts, channeled in the right direction,
efficient supervision and the most valuable professional guidance.

This project would not have been completed without the direct and indirect help and guidance of
such luminaries. They provide me with the necessary resources and atmosphere conductive for
healthy learning and training.

At the outset I would like to take this opportunity to gratefully acknowledge the very kind and
patient guidance I have received from my project guide Dr. Meghna Goel. Without his critical
evaluation and suggestions at every stage of the project, this report could not have reached its
present form.

I would like to extend my gratitude towards, Director, for his technical and moral support
required for the realization of this project report.

SHIVANGI DWIVEDI
Enrollment no. A60006417023

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 ABSTRACT

This paper uncovered the monetary and social effects of online business in India. It is the India's
quickest developing business sector with yearly multifaceted development rate (CAGR) 52% to
contact USD 36.7 billion by 2020. The expanding view of cell phones and online worlds are
expressively adding to the development of web based business.

Advantageous installment process, quick conveyance of item, high rebate, client cordial
strategies and simple returns are driving more clients towards web based shopping. Because of
the advanced unrest, the online business division in India increments from $3.8 billion out of
2009 to $17 billion of every 2014. It is anticipated to cross $100 billion inside the following five
years which will contribute over 4% to India's Gross domestic product. Internet business gives a
valuable asset to the development of MSME's and all parts of the country network. The
'Advanced India' venture which plans to offer a one-stop look for Taxpayer supported
organizations will totally help this area by acquainting the web with remote corners of India.

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 TABLE OF CONTENTS

Sr. No. Topic Page No.

Title page 1

Acknowledgement 2

Abstract 3

Table of contents 4

1 Introduction 5-12

2 Literature Review 13-17

3 Methodologies 18-21

4 Results & Discussion 22-25

5 Conclusion & Future 26

Prospects
References 27-28

Plagiarism Report 29-30

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 CHAPTER 1

INTRODUCTION

E-COMMERCE

Electronic commerce which is widely known as E-commerce from the past few years has
become a buzzword for the businesses, with the main motive to aware business enterprises and
people engaged with business process about the use of computer and communication
technologies to simplify business procedures and increase efficiency and to make out work more
effectively. To exchange information between individuals, companies, and countries, but most
important of all , between computers e-commerce provides a combine range to processes such as
Electronic Data Interchange (EDI) , electronic mail (e-mail), World Wide Web (WWW) and
other internet applications.

In other words we can state that E-commerce is the movement towards World Wide Web. And
this movement has been sub divided into two main sectors: - business-to-business (B2B) and
business-to-consumer (B2C). So, E-commerce is the core business process of buying, selling
goods, services, and information through internet. The e-commerce is widely growing all over
the internet hugely.

But just because of some political structures which interfere in the process of e-commerce taken
out through the internet technology creates challenge for the business internationally. Things like
currency conversions, import and export restrictions, tariffs, local business customs, and the laws
of each country in which the trading partners reside and create international electronic commerce
difficult.

E-commerce as we know is a very wider term and is big and in future will get much bigger.
People seem to enjoy shopping on the internet, as it is a high customer-satisfaction area. Several
online shopping websites are generating several schemes and cleverer things to entertain and

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attract the customers and to have future security with them in case of shopping. Some shopping
sites are EBay, Flipcart, Amazon, Snapdeal, and etc.

Fig 1. E-commerce

TRANSITION TO E-COMMERCE IN INDIA

The future for e-commerce in India is very vast, with a rapid growth of the number of Internet
users. The extensive savings in time and money is achieved by both the buyers and the sellers
which are meant to be an advantage.

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MODE OF E-COMMERCE

Web based business can be ordered into three modes or sections in light of the members
associated with the exchange.

1) Customer-to-Customer (C2C): It finds inventive approaches to enable the shopper to

communicate with each other and by doing as such they can pitch products or administrations to
each other.

2) Business-to-Customer (B2C): B2C exchange is led over the web between a business and a
purchaser. E.g. an online distributer may pitch his book to a client and get installment without
meeting him/her.

3) Business-to-Business (B2B): It alludes to a circumstance in which one business make an

exchange with other.

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ANALYSIS OF DATA

1. INTERNET USERS IN INDIA

India had in excess of 100 million web clients in the year 2010 and this esteem achieved
121 million clients before the finish of 2011, which make it the third-biggest nation in
web populace. It is discovered that the quantity of web clients in India is triple i.e. 243
million out of 2015, developing at a CAGR of 25.5 %. Fig 2 demonstrates the web clients
in India.

Fig 2. 5- Year CAGR for E-Commerce Sales

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2. RECENT TRENDS IN E-COMMERCE
 Industry examines by IAMAI demonstrate that online travel rules the web based business
industry in India with 70% of the piece of the overall industry.
 Online retailer real classes incorporate cell phones, workstations, cameras, books, PCs,
garments, home and kitchen machines, toys, and endowments.
 Advancement of items, enlistment through internet based life, and the example of
promotion by corporate part and so on are made on the web.
 Changes the way of life of Indian customers by looking for accommodation, solace and
assortment.
 Different creative models are being tried and propelled in the market.
 There are client's delightment because of first conveyance, simple installment and simple
merchandise exchange.

Fig3. The battleground for e-commerce

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3. ONLINE RETAIL IN INDIA
It is seen that the advanced trade showcase in India has expanded from $4.4 billion out of
2010 to $13.6 billion out of 2014 with a consistent way. It is relied upon to reach $16
billion before the finish of 2015 because of the developing web populace and expanded
online customers. Fig 4 demonstrates the market size of online retail in India.

Fig 4. Online Retail Spending In India

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4. VERTICAL SPECIFIC E-COMMERCE IN INDIA
Vertical particular e-rear spotlights on a specialty item or administration as their
administrations are not quite the same as other standard web based business players. The
esteem expansion by taking this wander encourages them to raise reserves. The basic part
of this industry particular hazard offers an easy to understand encounter driven by
accommodation, more data and cost adequacy. E.g. Ola Taxis, a taxi specialist
organization, separates its administrations by giving an awesome easy to use involvement
to individuals searching for auto rentals and taxi benefit. Table 1 demonstrates the vertical
particular web based business in India.

Table 1: Vertical specific e-commerce players in India

Travel Real Estate Fashion Furniture Health Education
MakeMy trip Magic bricks Jabong fabfurnish healthkart Edukart
Goibibo Commonfloor Myntra Pepperfry Lenskart meritnation
Yatra 99acres YepMe Urban ladder Portea Edureka
IRCTC Housing Zovi Zansaar Medical Toppr
Cleartrip Limeroad Embibe

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E-COMMERCE CHALLENGES AND RISKS

The risk scene is continually developing and progressively difficult the sensational development
of the web based business segment is joined by different difficulties said underneath

 Absence of suitable control and straightforwardness add to digital security chance.

 Tax assessment Difficulties
 No particular online business laws in India.
 Low passage hindrances prompting lessened upper hands quickly changing plans of
action.
 For the most part confined to urban territories as Web use in provincial zones is
restricted.
 Deficiency of labor.

ROLE OF GOVERNMENT

Indian Government must need to assume a noteworthy part in the advancement and development
of these advances all through Indian enterprises.

 Government must need to help fast arrangement of important framework. Universal

Diary of Trade and Administration Exploration 41.
 By giving different instructive and abilities advancement assets.
 Plan for the improvement of MSME's on a national and worldwide scale
 Guaranteeing value in the accessibility of chances and advantages for the general
advancement of the rustic network. Government needs to receive some particular web
based business laws.
 Advanced India, Make India, expertise India and so forth are some great advances taken
by the administration for this reason. It will improve the economy of our nation.

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 CHAPTER 2

LITERATURE REVIEW

 Gupta (2014) in her paper " E - Trade: Role of e - trade in the present business"
presents a thorough meaning of e - commerce while confining it from e - business. The
paper enrolls the distinctive e- business models i.e. B2B, B2C, B2G and C2C, narratively
breaking down the nitty gritties of each.

 Rina (2016) additionally expounds the diverse utilizations of e - trade in "Difficulties

and Future Scope of E - commerce in India", in the meantime characterizing how
much they are operational in the nation.

 Gunasekaran, Marri, McGaughey, and Nebhwani (2002) gave a wide viewpoint of

electronic trade inside authoritative frameworks in "E-trade and its effect on tasks
administration”, characterizing it with alludeence to e-exchanging and explaining - how
it has pervaded each field of business. The paper recognizes the progressive pretended by
before web applications like e-mail and electronic information trade and points of interest
the progressive changes brought by the web innovations in assembling, promoting,
buying, outline, generation, offering and dissemination, warehousing and human asset
administration. Web based innovations have empowered organizations to abbreviate
advancement, buy and acquisition cycles, keep up upto date item also, advertise data,
altogether increment the speed of correspondences and increment the nature of client
relationships by encouraging close contact and consistent communication. The paper
ponders inside and out, the criticalness of online advances in various business activities,
hence, moving forward their proficiency through effective B2B e-business.

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 Mishra and Kotkar (2015) trace the timetable and advancement of B2C web based
business in "A Study on Current Status of E-Commerce in India: A Comparative
Analysis of Flipkart and Amazon" with its initiation in the mid 1990s through the
appearance of wedding and occupation entries. Be that as it may, because of constrained
web openness, frail online installment frameworks and absence of awareness, the
advance was moderate. The Indian B2C internet business industry got a noteworthy lift in
mid 2000s with the development of online administrations to movement and lodging
appointments which keep on being significant benefactors even today.

 Das and Ara (2015) observe in "Development of E-Commerce in India" that however
online travel and lodging appointments still control the lion's offer of web based business
advertise, their offer has comparatively fallen throughout the years because of the
ongoing growth and resulting ascent of e-following administrations. There has been a
colossal flood in the volume of interest in this area. With the web based business
showcases in the west achieving their immersion, financial specialists see gigantic
potential in the Indian market, in the light of which, many new businesses have gotten
subsidizing from investors and private value firms.

 Aulakh (2015) China's Alibaba Gathering and offshoot Insect Budgetary turned into the
biggest investors of One97 Correspondences, the parent of Indian e-rear Paytm, by
contributing $680 million, in 2015.

 Macintosh, (2014).To tap the capability of what it views as "immature web economy"
of India, Japanese speculation organization and innovation powerhouse Softbank put
$627 million into internet retailing commercial center Snapdeal and $210 million in Ola
taxis. (Macintosh, 2014).

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 Aggarwal, (2014). Similarly, New York firm Tiger Worldwide Administration has
supported organizations such MakeMyTrip, Flipkart, Myntra and Quickr.The availability
of assets has exhibited an ideal biological system and development open doors for large
and additionally little organizations. It has empowered neighborhood new companies to
get by in ferocious rivalry against outside monsters and has encouraged the entrance of
web based business to each feature of human life; with the end goal that the
differentiation between online business and conventional business is getting blurred.

 Through "Problems and Prospects of Internet business", Raghunath and Panga

(2013) present an extensive examination of different subtleties of online business while
complementing that, in display time each business action, be it promoting, requesting,
installment and so forth, can be performed in the advanced biological community. The
paper likewise enrolls various focuses on the significance of online business which are in
charge of its improvement as the new tradition. It has empowered the creation and abuse
of new business opportunities, at a similar time expanding the say of clients in the
improvement of new items and services-trade has not just enlarged the execution of
inward business management, but has additionally empowered better client connections
by advancing a plan of action that is basically in view of data sharing. The availability of
web network and other online devices heralda new upheaval.

 SWOT investigation of internet business directed by Awais and Samin (2012) highlights
pervasiveness, low working cost, enhanced client communication and efficient as the one
of a kind qualities of e-commerce, but, in the meantime complements upon the need for
the organizations to adjust to the changing condition and improve always to think of
better contributions for clients.

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 Gangeshwer, (2013). Despite rising rivalry, the survival of the organizations will rely on
how proficiently they can connect the existing holes in web based business exchanges.
The pervasive idea of web has empowered web based business to challenge topographical
limits and penetrate distinctive market, so as to evoke request from sub-urban and
country territories, in the wake of having successfully tapped its potential in metropolitan
urban areas. Fully expecting expanding request from Level 2 and 3 urban communities,
numerous internet business firms are attempted endeavors to enlarge their range by
putting resources into better framework. In the light of developing number of sites,
offering comparable merchandise and enterprises, more prominent criticalness is being
credited to Web Marketing, which will assume an unparalleled part in group of
onlooker’s procurement for web based business websites, by showing the commercials on
web crawler result pages and different entryways. Web Showcasing will move internet
business as well as develop as an essential help apparatus to block and concrete stores.

 Aside from Web Marketing, Deshmukh, Deshmukh& Thampi (2013) recognize

another imperative advancement: m-business, which they distinguish as a subset of online
business. "Change from Internet business to M-trade in Indian Context" reviews the
present and potential status of online business and m-business in the Indian market, while
anticipating the last as the potential future. The paper perceives universality,
personalization, adaptability and promptness as the particular points of interest of m-
commerce. The creators attest the possibility that PDA entrance and ascend in internet
client base, for the most part determined by youth, will impel the development of web
based business. Measurable information is utilized to underline that the foundation
imperative for m-business improvement as of now exists; nonetheless, it is yet to be
appropriately sent. With versatile entrance giving a lift to computerized downloads and
empowering less expensive financial exchanges, the need of great importance is to
improve client certainty by giving them affirmation of security and protection, which will
quicken development towards a cashless economy.

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 Rina, (2016) notwithstanding multitudinous prospects, the development of internet
business in India has not been up to its maximum capacity because of specific difficulties
that repress the development of firms. The development of advanced trade in India is
hindered by deficient foundation, coordination’s disappointment, absence of assessment
consistency and declining edges. Notwithstanding extraordinary competition, firms need
to spoil the clients with enormous rebates, regular offers and liberal returns arrangement
which demonstrate hindering to their benefits. As against the organizations following
stock model, e-commercial centers are all the more unfavorably influenced by
sponsorships as they bring to the table impetuses to the merchant for posting their items
on the site notwithstanding the humungous rebates and extensive variety of offers to the
clients. The expanding satisfaction costs (incorporates each cost brought about from the
point a request is put till the time its conveyed to the client), absence of last mile
availability in many sub-urban and country territories and the rising opposite
coordination’s additionally prevent the development of web based business firms by
bringing about tremendous loss.

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 CHAPTER 3
METHODOLOGY

As the examination manages factors like client assumptions regarding the quality
associated with E-Commerce exercises and in addition the issues looked by the
organizations at the season of giving items and administrations, the exploration depends
on coordinate individual examination and online answer by the respondents. For this
reason two particular research instruments 'Survey and Interview Guide' are utilized. The
investigation is overview in nature with Qualitative and Quantitative approach. As an
apparatus the examination has utilized Questionnaire everywhere and Interview Guide to
a little degree to gather more top to bottom data. In every one of the 240 individuals were
chosen for every item over all financial strata as the example of the investigation.

Research Design: Survey

i. Method Of Data Collection

Optional information – different research papers of comparable kind have been

alluded to check the configuration and the sort of charts for analization of
information .Other than this , different researcher and information from other
confirmed bank and source are utilized to gather information which is translated
promote for information investigation.

ii. Type Of Research Design

The examination is clear and exploratory research. Clear as in it set up connection

between proficiency rate of the nation and given parameter. Exploratory research
as in it gathers information from different parameter and has a tendency to build
up a circumstance and end results connection between the parameter.

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iii. PARAMETER

Distinctive parameter is utilized to set up connection between the markers.

Proficiency rate, m-trade deal, development of web, joblessness rate and other
such markers are utilized to set up clear understanding auto pointers.

iv. DATA REPRESENTATION

The information gathered is spoken to in type of Table, diagram, pie outlines and
X-Y charts.

v. Data technique

To build up clear understanding and relationship among markers “SPEARMAN

RANK CORRELATION AND PEARSON CORRELATION” is utilized in this
exploration paper.

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 CHAPTER 4

RESULT AND DISCUSSION

Online business is a developing division in India. Much the same as the development of IT
industry in India through the 1990s, the 2010s will be associated with the development in the E-
Commerce industry. In its present express the commitment of E-Commerce to GDP is around
0.2% which is relied upon to grow 15 times to around 2.5% by 2030.

The effect is huge to the point that the present flood of de-monetization could have not been
thought if E-Commerce did not exist. Online business to a substantial degree assimilated its stun
and also picked up the most extreme out of it too.

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By 2030 the commitment to GDP by E-Commerce is relied upon to reach to around 300 Billion
Dollars which is around 20 Billion Dollars in its present state.

After the underlying flood of B2C E-Commerce, the B2B area is picking up a great deal of
footing. 95% of the business in the B2B segment is still unorganized and E-Commerce will help
compose by utilization of innovation and other help capacities.

The effects of E-Commerce industry are still in extremely incipient stage yet are obvious. The
effect right now can be found in the accompanying parts:-

TECHNOLOGY - One of the significant drivers of innovation will be E-Commerce industry

and the other way around. We are seeing new age innovative solutions(AI/Machine Learning)
being taken up to take care of the business issues to bring trade to everybody carefully. This is
seen in both B2C and B2B division. Venture into innovation segment is going on to drive
development in the E-Commerce area.

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LOGISTICS - Logistics industry is both a bottleneck and a driver for internet business
industry. For a similar we perceive how last mile and between city coordination’s arrangements
have come up to carefully interface the diverse partners the nation over. The Uber model of
moving travelers is actualized in some frame or the other in the strategic part. The development
of E-Commerce will drive advancement in the strategic division to make the items accessible to
the end client.

TRAVEL - Travel right now 70% of the commitment to E-Commerce originates from the
movement area which incorporates the online ticket appointments to other travel courses of
action. This has made the market aggressive by expediting all players a similar stage and has
additionally given purchaser more choices. Travel industry will be most punctual adopters to
end up totally digitized and that is because of E-Commerce.

EDUCATION - One of the businesses to have the most significant effect of E-Commerce is the
instruction. The capacity of E-Commerce to give quality training to everybody is gigantic. India
will have one of the greatest arrangements of youth populace and subsequently the degree for
instruction division to be the greatest achievers due to E-Commerce is certain.

E-RETAIL - The banner bearers of the E-business wave have been the different E-Retail trade
stages. E-retail segment is anticipated to add to around 3% of the aggregate Retail offers by
2020 and is at exhibit around 1%. This wave is seen in both B2C and C2C show and will
undoubtedly become further. This isn't just for merchandise yet in addition has caught the
nourishment part.

Different Industries - The method for working in the Real Estate segment is now
observing the change on account of the E-Commerce industry. This will change advance with
all property related exchanges coming on the web and getting shut online also. Managing an
account part is profiting also with diminished activities cost of online exchanges. Online
business in human services has conveyed wellbeing related answers for the urban India and will
additionally infiltrate profound into Tier I and Tier II urban areas.

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Bolster Industries - There are different help businesses which have created as a result of E-
Commerce. These are computerized publicizing, examination, installment portals and so on.
These will wind up billion dollars divisions as E-Commerce develops exponentially.

Other than the effect to these enterprises, E-Commerce is helping make the market more
aggressive, driving better client experience and driving availability of products to all. Internet
business is additionally bringing exchanges online which makes the framework more
straightforward and to a degree may additionally drive mechanical reception. This will likewise
help in driving defilement levels down with everything coming on the web. The effects are
significant and will advance with time.

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 CHAPTER 5

CONCLUSION & FUTURE PROSPECTS

Through the investigation of research paper we came to know how vital web based business
industry right now on the planet is. With setting of India we likewise attempt to locate the
upward pattern of development of online business in India, and furthermore increment in m-
begin and advanced entrance in India .Government strategies and activities has additionally
prompt increment of web based business in India over years? As per study after disparagement,
part of cashless economy in India has expanded essentially, accordingly the part of web
additionally moreover other such government arrangements have likewise had a noteworthy
effect. a ton have been done and a considerable measure must be done with regards to web
based business industry in India . Likewise we think about effect of education rate and
joblessness rate on the development of web based business industry in India. Additionally there
is critical need to build the education rate in India and furthermore spread mindfulness among
country individuals in India about cashless economy and part of web in India in today’s world.
With need of more portion of cash towards digital wrongdoing and strict law’s should be made,
to make this procedure more secure as well as solid. In this exploration paper we experienced
the pattern of web based business in India which is rising essentially and furthermore how
specialist organization like 4G, 3G served to expand the computerized infiltration in India
which subsequently served to expanded the internet business and m-trade deals in Indian
economy. Similarly government had likewise assumed enormous part through various laws and
approaches towards the development of offers by means of web.

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[2]. BCG. (2012). the Connected World. The Internet Economy in the G20. The $ 4.2 Trillion
Growth Opportunity. Boston: The Boston Consulting Group.

[3]. Bilbao-Osorio, B., Dutta, S., and Lanvin, B. (2013) the Global Information Technology
Report 2013. Geneva: World Economic Forum.

[4]. Billy, S., and Raymond, L. (1993) Information Technology: Threats and Opportunities for
Small and Medium measured Enterprises. Worldwide Journal of Information, 13, 439-448

[5]. Dr. Anjum Bimal, Tiwari Rajesh, (9 NOVEMBER 2011) ,Economic And Social Impacts Of
E-Commerce,‟ CFA International Journal Of Computing And Corporate Research, VOLUME 1
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[6]. E-Commerce – An Indian Perspective 3rd Edition by P.T. Joseph, S.J.

[7]. Hiwarkar Tryambak, (March 2013), E-Commerce affect on Indian Market: a Survey on
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[8]. ITIF. (2013). the Economic Benefits of Information and Communication Technology.

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[9]. Jahangir, M., Dominic, P., Naseebullah, and Khan, A. (2011). Towards Digital Economy:
The Development of ICT and E-Commerce in Malaysia. Present day Applied Science, 5 (2),
171-178.
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[11]. Washington DC: Information Technology and Innovation Foundation.

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PLAGIARISM REPORT

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 Questionnaire

Poll For the present investigation the surveys is the fundamental base for the exploration. It has
been intended to obtain the information with more extensive scope. Both the open-finished and
shut finished inquiries are surrounded in light of the idea of data required. The general inquiries
on client web based purchasing conduct are incorporated for additional data to get all the more
comprehension of the issues to the organizations giving on the web items and administrations
and also important for testing the theory. A similar survey organize is utilized for each of the
three kinds – Customer, Employee (inside client) and Manager. In view of 5 kinds of E-
Commerce, add up to 8 survey are framed – B2C Customer, B2C Manager, B2B, C2C, B2E
Employee, B2E Manager, C2B Customer and C2B Manager.

There are 8 types of questionnaire which actually divided in two views:

1. Customer View
2. Manager View

CUSTOMER VIEW

The poll information has around 45 to 49 actuality discovering questions in view of compose
and its necessities.

The representatives of the association are likewise considered as the inside clients of the
association and separate survey are framed for workers of E-Commerce organizations.

The underlying 8 questions manage the recurrence of web use and general enthusiasm of online
exercises.

The inquiries 9 to 32 manage the consumer loyalty and disappointment of online exchanges and
their desires regarding different quality issues.

The inquiries 33 to 49 cover the part of saw quality and the normal answers for the quality
issues of online exchanges.

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MANAGER VIEW

The survey information has around 35 to 45 certainties discovering questions in view of

compose and its necessities.
The underlying 5 questions manage the recurrence of web use and general enthusiasm of online
exercises.
The inquiries 6 to 28 manage the sentiment of chief and the higher experts who deal with
consumer loyalty and disappointment of online exchanges and their desires concerning different
quality issues.
The inquiries 29 to 45 cover the part of saw quality and the normal answers for the quality
issues of online exchanges.

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