India’s online retail industry is on track for a significant milestone in 2026, with annual sales expected to exceed $90 billion as consumers increasingly turn to digital platforms for everyday purchases. According to research by Redseer Strategy Consultants, the market recorded approximately $38 billion in gross merchandise value (GMV) during the first six months of the year, representing growth of around 25% compared with the same period in 2025. The performance marked the strongest first-half expansion in four years.
Redseer forecasts that the sector will grow by 22% to 24% over the full year, potentially making 2026 its fastest-growing year in five years. The changing composition of consumer spending is emerging as a major factor behind this momentum, with essential and lifestyle-oriented categories gaining ground.
Groceries, beauty and personal care products, and home furnishings are becoming increasingly important to online retailers. Together, these segments are expected to contribute approximately 40% of the industry’s GMV in 2026 and account for around 60% of the additional value generated during the year.
Online grocery sales have been particularly impressive. The category expanded by 53% in one recent half-year period and 51% in the following period, according to Redseer’s assessment. Its share of online retail GMV is projected to increase from approximately 16% to 19%, positioning groceries to overtake mobile phones as India’s second-largest online retail category.
Electronics also recorded a recovery, with growth reaching 22%, supported partly by a reduction in the Goods and Services Tax on large appliances. However, Redseer expects growth to moderate to between 12% and 15% in the second half of 2026. Mobile phone sales remain comparatively subdued, showing little growth in the first half and projected to expand by only 2% to 3% across the year.
The upcoming festive shopping period could provide another major boost. Redseer estimates that festive-season online sales will rise by approximately 25% to between $15 billion and $16 billion, marking the strongest performance in about five years.
Groceries are projected to lead festive growth at 48% to 50%, followed by beauty and personal care at 35% to 40%, and home and furniture at 32% to 35%. Mobile phone sales, by comparison, are expected to grow by just 5% to 7%.
As a result, mobile phones and electronics are expected to represent 46% of festive GMV, down from 51%. Redseer partner Kushal Bhatnagar observed that India’s online retail expansion is increasingly concentrated in categories supported by consistent consumer demand.
The findings suggest that everyday shopping needs, rather than electronics alone, are becoming central to India’s next phase of e-commerce growth.
