India’s e-commerce sector is undergoing a period of strong momentum, shaped by deeper internet access, growing smartphone usage, and a steady shift toward digital payments. As online retail continues to gain traction across the country, new patterns of consumer behaviour and business strategies are emerging. Mobile commerce and social commerce are increasingly defining how products are discovered and purchased, while artificial intelligence and voice-enabled interfaces are changing how customers interact with online platforms. A major development in this space is the expansion of e-commerce beyond metro cities into Tier II and Tier III locations. This shift indicates that demand for online retail is no longer limited to urban centres. However, the overall picture remains uneven. In India, over 12 million sellers depend on trade for their livelihood, yet a very small fraction—only around 15,000—have a presence in e-commerce. Most small-scale sellers, especially those from rural and semi-urban areas, continue to face barriers in accessing digital platforms. The scale and reach of digital infrastructure in India—such as UPI and AADHAAR—have already shown what can be achieved when systems are designed with scale and inclusion in mind. ONDC (Open Network for Digital Commerce) is an initiative in this direction, aimed at democratising access to e-commerce by using open protocols built on open-source foundations. By offering a decentralised network rather than a single platform, ONDC opens up e-commerce to sellers, service providers, and consumers in a way that lowers entry barriers and reduces dependence on large private marketplaces. Its framework is especially relevant for regions like Jammu and Kashmir, where physical and logistical limitations have often excluded small and micro businesses from participating in national markets. In a recent meeting, Chief Secretary of Jammu and Kashmir, Atal Dulloo, held detailed discussions with the CEO of ONDC to explore how this model could be adapted to the local context. The focus is on building digital access for entrepreneurs and service providers such as electricians, plumbers, and local technicians, enabling them to offer their services through digital platforms. This approach would make these services more accessible to residents and bring visibility to workers who often operate informally. The ONDC model is already showing positive outcomes in other states. Case studies from Himachal Pradesh and Andhra Pradesh demonstrate how small producers, such as those in handloom and food processing, have gained faster market access and increased income through digital retail. These examples serve as useful templates for Jammu and Kashmir to adopt and modify based on local needs and capacities. The broader trajectory of e-commerce in India is also being shaped by new technologies that aim to meet changing customer expectations. Artificial intelligence is playing a growing role in creating more efficient shopping experiences, from personalised recommendations and chat support to improved inventory planning. Voice-based commerce, too, is making online shopping more inclusive by supporting regional languages and enabling access for users who may not be comfortable with traditional interfaces. Equipping local sellers and service providers with the tools to operate online will require support systems, digital literacy efforts, and partnerships across public and private sectors.
Digital Expansion
