IMPACT OF E-COMMERCE IN SUPPLY CHAIN IN INDIA

AUTHOR – PURVI BHAWANI, PGDM STUDENT AT GLOBAL INSTITUTE OF BUSINESS STUDIES (GIBS), BANGALORE

BEST CITATION – PURVI BHAWANI, IMPACT OF E-COMMERCE IN SUPPLY CHAIN IN INDIA, ILE MULTIDISCIPLINARY JOURNAL, 4 (1) OF 2025, PG. 321-332, APIS – 3920-0007 | ISSN – 2583-7230

ABSTRACT

The Grand India Grand explosion of e-commerce is dramatically altering logistics landscape as the estimates show that only four years from now, the market can grow from $75 billion in 2022 to $200 billion in 2026 which will come close to a CAGR of around 18.9% as stated. [1].

This immense growth is garnering radical changes within supply networks due to the route of technological innovations for advanced customer-centric strategies harnessing infrastructure upgrades and not by itself. Such a lot has increased the employment and adoption of AI (Artificial Intelligence) and ML (Machine Learning) in Indian infrastructures. Just for example, innovations in AI and ML can transform the logistics spaces to make supply chain forecasting and inventory management vastly improved-In fact, the potential impact of AI in reducing stockouts alone can be between 20-30% [2]. The operation of logistics is made even more efficient by adding these IoT technologies emerging out of the Internet, thereby generating errors in monitoring and enabling most of the orders to be delivered on time[4].

Now there are 918 million potential internet subscribers who are making the online busines boom the most of course. This happens particularly because metro cities have about 70% of e-commerce shipments[4].

Local areas began seeing much of hyperlocal delivery models and microwarehousing strategies being evolved. The conditions showed that in the year 2025, logistics could be forecast at a $380 billion revolution in India, even though the costs of logistics are very high at about 14% GDP unlike 8-10 % as in developed nations [1].

E-commerce houses are coming to call by starting the work of infra structures and preparing over 15 million square feet of warehousing space, all sides contributing to the infrastructure through various projects like greening the last mile with electricity vehicles to get a fully  electrical fleet by 2030[4].

There are a lot of possibilities that will come in this new state of observations, but there are also many problems that India must grapple with in order to realise them. It ranks 44th in 2023 according to India’s Logistics Performance Index (LPI), so the kind of infrastructure bottlenecks and the regulatory hurdles will have to be addressed with permanent and sustained  growth [2]. India is still a light but rapidly growing e-market because the future is extremely promising with youth leading the way fuelled by more digital reach.