Importance of E-Commerce in Sustainable Development

Abstract

Sustainable development is widely recognized as the most critical issue facing the planet today. It is a crucial concern for both developed and developing countries alike. In this context, e-commerce has emerged as a key driver in advancing sustainable development, playing a significant role in various countries, including India. The Indian e-commerce sector has experienced exponential growth, with projections indicating that it will reach US$ 111.40 billion in 2025 and US$ 200 billion in 2026, compared to US$ 46.2 billion in 2020. The impact of the e-commerce industry on micro, small, and medium enterprises (MSMEs) in India is noteworthy. E-commerce platforms have provided these enterprises with much-needed access to finance, technology, and training, thereby facilitating their growth and development. Moreover, the industry has also contributed to employment generation and has increased revenue from exports, creating a positive socio-economic impact. The objective of this study is to critically examine the relationship between e-commerce and sustainability, with a specific focus on the current trends and state of the Indian e-commerce landscape. The analysis draws upon data from various sources, including annual reports, publications, and relevant institutions and agencies associated with the development sector. By investigating the nexus between e-commerce and sustainability, this study aims to shed light on the potential benefits, challenges, and opportunities presented by e-commerce in the pursuit of sustainable development. The findings will contribute to a better understanding of the role e-commerce plays in fostering sustainable practices, both in India and on a global scale.