Redseer H1 2026 E-Commerce Growth Report

According to data from Redseer Strategy Consultants, India’s online retail market expanded by approximately 25% year-on-year to reach ₹3.55 lakh crore ($38 billion) in the first half of 2026, marking its strongest first-half performance in four years. Redseer projects full-year gross merchandise value (GMV) to cross ₹8.41 lakh crore ($90 billion) with an annual growth rate of 22–24%, accelerating at its fastest pace in five years. Non-mobile categories have emerged as the primary growth drivers, with grocery, beauty and personal care (BPC), and home and furniture together accounting for 40% of total online retail GMV in 2026 and nearly three-fifths of the incremental GMV added during the year. Online grocery recorded stellar growth of 53% and 51% across the last two half-year cycles, positioning it to eclipse mobile phones as the second-largest e-commerce vertical as its overall GMV share climbs from 16% to roughly 19%. In contrast, mobile phone sales remained flat in H1 2026 and are forecasted to grow by just 2–3% for the full year. Meanwhile, consumer electronics rebounded with a 22% growth rate in H1, bolstered by GST rate rationalizations on large appliances, though growth is expected to moderate to 12–15% in H2. Looking ahead to the 2026 festive season, Redseer anticipates e-retail sales to jump 25% year-on-year to ₹1.40–1.49 lakh crore ($15–16 billion), driven primarily by grocery (48–50%), BPC (35–40%), and home goods (32–35%). Consequently, the combined GMV share of electronics and mobile phones during the festive period is expected to drop below the half mark from 51% to 46%. Redseer Partner Kushal Bhatnagar noted that Indian online retail is expanding fastest where underlying consumer demand is most resilient, cementing everyday consumption verticals as the core engine of digital market expansion.