Grocery to overtake mobiles as India's online retail market to cross $90 bn

India's online retail market is projected to cross USD 90 billion in 2026, registering an annual growth of 22-24 per cent, its fastest expansion in five years, driven by everyday consumption categories like grocery rather than mobile phones, Redseer Strategy Consultants said in a report.

According to the analysis, e-commerce gross merchandise value (GMV) expanded roughly 25 per cent year-on-year to about USD 38 billion in the first half (H1) of 2026, marking its strongest H1 performance in four years.

While online retail accelerated, mobile sales remained flat at 0 per cent growth during the first half and are projected to grow by just 2-3 per cent across the full year due to sharp price increases curbing sales volumes.

Consequently, the grocery segment is poised to overtake mobile phones as the second-largest category in Indian e-commerce, behind fashion.

"This year, India's online retail is growing fastest where demand is steadiest," said Kushal Bhatnagar, Partner at Redseer.

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