New Delhi, India, February 5, 2019 : India-China should create a framework for cross border e-commerce. Our analysis, based on OECD data, predicts that India-China combined will host 47% of global e-commerce users. (refer the graph below). Moreover, by 2021, 39% of global e-commerce sales will come from India-China, said Prasoon Sharma, Director India Global. India’s B2C e-commerce sales will have compound annual growth of 23%. China’s e-commerce will be worth $800 billion by 2021.
Indian Railway Catering and Tourism Corporation (IRCTC) is one of the biggest e-commerce sites in India. IRCTC has 600 Million average annual visitors. Indian government should plan to promote IRCTC among Chinese tourist. Chinese tourist market consists of 135 million travellers a year, spending US$261 billion. At present, 1 million Chinese tourists come to India. In the next three years, India should capture at least 10% of the Chinese tourist market (equivalent to $26B). Even at 1% conversion Chinese e-commerce companies can have 60 Million new users annually by partnering with IRCTC.
As per Global infrastructure outlook, India needs $385 billion in next 25 Years for rail projects. Selling IRCTC stake to Chinese e-commerce company can be a win-win situation for both India and China. As once Chinese e-commerce companies like Baidu has a stake in IRCTC, they will put special effort to promote IRCTC to Chinese tourists, maybe by launching the IRCTC website and mobile App in mandarin. The launch of IRCTC in China will enable India to capture at least 10% ($26 billion worth) of the Chinese tourist market.
Both India-China is planning to boost agriculture-trade. Due to the US-China trade war in the next 3-5 years, both nations will do agri-trade worth $20 billion. Even at 5% conversion e-commerce companies can earn up to $1 Billion. By 2025, 90 million Indian farmers could increase their profits by using real-time market information provided by various e-commerce platforms. Even at 5% conversion e-commerce companies can have 4.5 Million new users. India-China should think of cross border e-commerce framework for Agro products. By Connecting e-mandi to e-commerce platforms like Alibaba and Baidu to give farmers a reasonable price for their products.
Recently published article in China’s Global Times suggested, “China and India are developing countries and ancient Eastern civilisations. The development of bilateral relations, if it follows the paradigm of Western international relations, will inevitably lead to geopolitical competition, confrontation, and security dilemmas. The two countries should abandon this Western paradigm and apply Eastern wisdom to solve development concerns when they arise.” India-China should think of creating cross border e-commerce framework for Agro products by connecting e-mandis to e-commerce platforms like Alibaba and Baidu to give farmers a reasonable price for their products.
This News Article is about the latest research published by Prasoon Sharma. The author is Global Public Policy leadership fellow at New York University and University College London. He has led a Chinese’s MNC in South Asia and represented India at various forums like BRICS, Strategic economic dialogue. (prasoon.sharma.18@ucl.ac.uk).
Photo Caption : Prasoon Sharma with Professor Jagdish Sheth author of the book : Chindia Rising
