India stands at the cusp of a retail revolution, driven by the rapid ascent of Quick Commerce and the evolving e-commerce landscape

In this new-age era, India is transitioning rapidly to a faster delivery model known as Quick Commerce (Q-Commerce).

Given India’s massive population, it is unsurprising to witness an annual growth rate of up to 300 per cent in Q-Commerce, a subset of the burgeoning e-commerce sector. Unlike traditional e-commerce, Q-Commerce focuses on meeting daily consumer needs, making its astronomical growth remarkable as it started from scratch.

The seamless experience enjoyed by younger consumers has been a key growth driver

for this industry. Even speciality retailers like Sangeetha have innovatively combined physical stores with quick commerce to deliver electronic gadgets such as mobile phones, laptops, and other devices in record time. This model, however, requires further development to include non-banking financial companies (NBFCs), enabling easier purchasing options for high-value items like electronics. Integrating NBFCs into this ecosystem would provide value-added services that could drive growth across the retail sector as a whole.

India has been deliberating on an e-commerce policy since 2018. However, progress has been slow, with several delays. In 2019, the Ministry of Commerce and Industry released a draft national e-commerce policy after extensive discussions with industry stakeholders. Yet, with the industry undergoing a paradigm shift, the wait for this policy has become too long.

In August 2024, Union Commerce and Industry Minister Piyush Goyal assured that the policy would be announced soon, highlighting critical issues it aims to address. The minister stressed the importance of transparency in algorithms used on online platforms, emphasising that they should neither manipulate nor unduly influence consumer choices. Additionally, he underlined the need for authenticity in online ratings and reviews, ensuring they reflect genuine customer experiences. Misleading advertisements on e-commerce platforms were also identified as a pressing concern, with calls for their elimination to maintain trust and integrity in the digital marketplace.

With the budget session approaching, there is an opportunity to address these long-pending policy issues. While discussions on the draft e-commerce policy have almost concluded, the final proposal awaits approval. Reports suggest that the government is finalising the draft e-commerce policy, and the industry hopes it will be introduced during the budget session. Parliamentary discussions could make the policy more robust, fostering a win-win situation for all stakeholders.The new policy is expected to strike a balance between protecting small businesses and supporting large e-commerce platforms. Creating a regulatory environment conducive to growth would not only safeguard domestic entrepreneurs but also promote “Make in India” initiatives. A well-structured policy would encourage innovation and competition while ensuring consumer interests remain a priority.

Both e-commerce and Q-Commerce are redefining the way consumers shop, albeit with distinct approaches. E-commerce prioritises variety and cost-effectiveness, while Q-Commerce emphasises speed and convenience. The evolution of these models highlights the need for businesses to balance customer satisfaction, operational efficiency, and sustainability. The retail sector’s adoption of cutting-edge has played a pivotal role in optimising business operations. New technologies enable accurate predictions of order patterns, improve delivery timelines, and streamline inventory management, thereby enhancing overall business efficiency.

This tech-driven optimisation is expected to dominate commerce in the years to come. As e-commerce and Q-Commerce continue to evolve, the focus will be on delivering a seamless and quick experience to consumers. Companies that excel in providing instant gratification through efficient delivery systems, innovative business models, and advanced technologies will gain a competitive edge in this fast-paced industry. The government has a pivotal role to play in fostering an environment where businesses can thrive. A robust e-commerce policy, introduced during the budget session, would address longstanding industry challenges and set the stage for sustainable growth.

By ensuring transparency, authenticity, and fair practices, the policy can instil confidence among consumers and businesses alike. The industry’s expectations from the upcoming budget are high. Stakeholders hope for a policy framework that nurtures innovation, encourages investment, and supports small and medium enterprises while holding larger players accountable for ethical practices.

(The writer Chairman and Managing Director of Sangeetha Specialty Retail Chain. Views expressed are personal)