Ecommerce sector to reach USD 200 bln by 2027

Tuesday 19 February 2019 00:10 CET | News

Morgan Stanley has revised its estimate for the ecommerce sector, expecting it to reach USD 200 billion by 2027, according to Times Now.

The new estimates come after India’s new foreign direct investment (FDI) rules regarding online marketplaces released in December 2018. The new FDI rules, which came into effect on February 1, bar online marketplaces with foreign investments from selling products from sellers in which the online marketplaces hold a stake.

According to Morgan Stanley’s report, the regulations are expected to pose headwinds to growth in the near term as some companies restructure their businesses, processes, and contracts to be compliant.

In addition, the emergence of an online model is expected in India, which could drive growth in the medium to longer term, according to Times Now.

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Keywords: ecommerce, India, FDI, marketplace, Morgan Stanley
Countries: World