India’s e-retail and allied sectors including logistics, warehousing and IT/ITeS are expected to create about 1.45 million direct jobs by 2021, a joint report by Snapdeal and KPMG said on Tuesday. Logistics and warehousing sector is expected to be the largest contributor creating direct employment opportunities for about 1 million, while e-tailing is expected to add 0.4 million high-skilled jobs by 2021, the study titled ‘Impact of Ecommerce on Employment in India’ said.
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“Through this report, we aim to highlight how the industry is generating direct and indirect jobs in core and associated industries, creating entrepreneurship opportunities in the deepest pockets of India and how it is influencing the socio-economic fabric of the country for a more balanced development,” Snapdeal co-founder and CEO Kunal Bahl said. The e-commerce sector in India is projected to cross USD 103 billion by 2020, while e-tailing is expected to account for 67 per cent (USD 68.8 billion). Also, for every job that is created by the e-commerce industry, further 3-4 jobs can get created in downstream industries.
Besides, online seller base is projected to grow to 1.3 million by 2020 and expected to add more than 10 million net new jobs. With about 70 per cent of the online sellers expected to come from smaller towns by 2018-19, e-commerce is also creating a noticeable socio-economic impact by reaching interiors of the country, the report said. “Besides creation of employment in direct industries, e-tail has also provided new opportunities to craftsmen, traditional artisans, merchants, sellers and women. The speed and scale of potentially creating a larger socio-economic impact is noteworthy,” it added.
E-tail has created a big impact on entrepreneurship and startup culture in the country and has helped people build careers from a range of varied skills such as developers, content writers, designers, photographers, etc. It has also created a shift in employee expectations by offering employment options with exciting career paths, diverse opportunities, and new age jobs.
The study also outlined the potential challenges and recommendations on roles that government, industry bodies and e-commerce companies can play in building more employment avenues and up-skilling. The recommendations include need to invest in R&D for technology advancement, improving infrastructure and labour reforms, enhancing skills through vocational training and offering incentives on employment created by startups.