India SMEs pivot to branded e-commerce as sector orders surge 16%

Small manufacturers are leveraging digital platforms to capture a $250 billion market, shifting from contract production to direct consumer sales.

By Handelsavisen Newsroom · Automated 2026-07-10 09:47 UTC · 1 min read

Indian small and medium-sized enterprises are accelerating their transition from contract manufacturers to independent brand owners, tapping into a digital commerce market valued at $250 billion.

The shift is driven by integrated e-commerce platforms that allow smaller firms to bypass traditional retail intermediaries and reach consumers directly.

India’s e-commerce sector recorded a 16% year-on-year increase in online orders during the January-May period, according to data cited by The Hindu Businessline.

The structural change is underpinned by robust demand growth.

India’s e-commerce sector recorded a 16% year-on-year increase in online orders during the January-May period, according to data cited by The Hindu Businessline.

This expansion is not limited to large tech platforms but is increasingly fueled by a long tail of smaller sellers digitizing their operations.

For manufacturers previously reliant on export contracts with major US retailers, the domestic digital channel offers a higher-margin alternative.