Mobile-First Growth to Drive India’s Digital Economy Past $1 Trillion

India’s digital consumer market is poised to surpass the $1 trillion mark within the next decade, driven by a surge in smartphone usage, mobile-first behaviour, and a thriving ecosystem of emerging consumer brands, according to a new report by Bessemer Venture Partners.

Titled “Click, Shop, Repeat”, the report identifies a “triple engine” — rapid mobile internet adoption, seamless digital payments, and rising consumer aspirations — as the key drivers behind India’s booming digital economy.

“Even if the market grows at a modest rate of 20% annually, it will cross the trillion-dollar milestone,” said Anant Vidur Puri, Partner at Bessemer Venture Partners and co-author of the report. “Phone usage continues to rise, access to products has become effortless, and the digital experience is now deeply embedded in daily life. What once meant a trip to the mall and a movie outing is now a mobile-first experience.”

With over 800 million smartphone users spending nearly eight hours online daily, the report finds that India’s digital ecosystem is rapidly evolving. Platforms have turned into digital storefronts where small, niche brands can gain nationwide visibility almost instantly.

Puri highlighted how the digital landscape has transformed the journey for new-age brands. “If your product is unique or trending, platforms will come find you. A brand can now appear on 20 platforms with minimal effort — a massive shift from a decade ago.”

The report stressed the growing importance of consumer retention as a pillar of long-term growth. “Scaling a brand is one thing, but sustaining it is another. Retention drives revenue predictability, reduces marketing spends, improves profitability, and lowers cash burn,” Puri added.

The report also stresses that India’s digital consumer market is deeply fragmented, and understanding target audiences is crucial. “India is not one market — it’s many. Affordability varies drastically. You need to know if your market is for a ₹100 lipstick or a ₹1,999 one. Every price point has its own perception of value,” said Puri.

With nearly 600 million Indians born after 2001, the country’s digital future is being shaped by a generation that has grown up in an era of smartphones, high-speed internet, and e-commerce. “They spend more than 50% of their waking hours online — shopping, learning, streaming, and socialising. This embedded digital culture ensures that the digital economy will continue to scale for years to come,” Puri noted.

The report predicts that India could soon mirror economies like China, where digital commerce already accounts for more than 15% of GDP. But instead of replicating Western models, Bessemer argues that India's success lies in creating brands that are culturally relevant and locally attuned.

“The quick commerce wave, the playbook for building brands for a billion Indians — these are innovations the world can learn from India, not the other way around,” Puri concluded.

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