What do festive sales say about e-commerce?

E-commerce slowed in India in 2024, and was tepid in the first half of 2025. While festive sales usually buoyed e-commerce each year, the last two years have been muted. Will it be different this season?

- RADHIKA P. NAIR

The first six days of sale show a pick up in growth, with gross merchandise value (GMV) rising 22% to 45,000 crore. Is consumption roaring back?

1 Why is the festive season sale being more closely 1 watched in 2025?

Indian e-commerce today has reached $60 billion in GMV, which is the total value of goods sold, making India the country with the second-largest online shopper base. However, since the pandemic, private consumption growth in India has slowed. It was at 8% in 2022-2024 versus 11% in the pre-covid years of 2017 to 2019, according to data from consulting firm Bain & Co. This has had a direct impact on e-commerce, with growth slowing down. GMV in e-commerce grew just 13% in 2023 and 11% in 2024, according to data from Redseer. The festive sales similarly were muted in the past two years, especially in 2024 (see chart).

2 How did the Indian government come to the rescue of e-commerce?