India's online retail market to cross $90 billion as grocery surges past mobiles

India's online retail market is on track for robust expansion, with projections showing the sector will cross the $90 billion mark in 2026, according to analysis by Redseer Strategy Consultants. The market is expected to register annual growth of 22-24 per cent, marking its fastest expansion rate in five years and driven primarily by everyday consumption categories rather than discretionary purchases.

Data from the first half of 2026 underscores the sector's momentum, with e-commerce gross merchandise value expanding approximately 25 per cent year-on-year to reach roughly $38 billion. This represents the strongest first-half performance recorded in four years, signaling sustained consumer appetite for online shopping.

The growth trajectory reflects a significant shift in category performance. While mobile phone sales remained flat during the first half with zero per cent growth, the segment is projected to achieve only 2-3 per cent growth for the full year as sharp price increases dampen sales volumes. In contrast, grocery and staple goods categories are experiencing robust momentum.

This dynamic is reshaping the hierarchy of India's e-commerce landscape. Grocery shopping is positioned to overtake mobile phones as the second-largest e-commerce category, behind the dominant fashion segment. The shift underscores a maturing market where essential consumption items, driven by steady household demand, are outpacing discretionary electronics purchases.