Growth and opportunities of e-commerce in rural areas: Evidence from Bastar district

Abstract

E-commerce has emerged as a transformative force in rural India, driven by surging internet penetration (57% of 958 million active users in 2026 are rural) and smartphone adoption. National projections indicate the rural e-commerce market could exceed US$100 billion by 2025, with overall Indian e-commerce growing at 19-25% CAGR to reach hundreds of billions by 2030. This paper analyses growth drivers, opportunities for rural sellers and consumers, and evidence from Bastar district (Chhattisgarh)-a tribal-dominated region rich in GI-tagged handicrafts like Dhokra, woodcraft, and Kosa silk. While national rural adoption is accelerating via platforms like ONDC, Amazon, and Flipkart, Bastar shows extremely low e-commerce usage (only 2% of artisans trade online; 98% do not). Infrastructure upgrades (BastarNet fibre optic network and 5,000+ new mobile towers) and initiatives like “Bastar se Bazar tak” create massive untapped opportunities for direct market access, higher incomes, and global reach. Challenges include digital literacy gaps, logistics, and connectivity (improving). Recommendations focus on targeted training, artisan cooperatives, and policy support to unlock inclusive growth.