2026.04.13 India's E-commerce Market Grows 25% in Q1 2026
01. India's E-commerce Market Grows 25% in Q1 2026
India's e-commerce market achieved a 25% year-on-year growth in the first quarter of 2026, driven by macroeconomic improvements, supportive policies, and recovering consumer confidence. Following a 19%-21% growth in 2025, with a second-half acceleration to 22%-24%, the market's GMV surpassed $65 billion. New users are primarily from Gen Z, lower-tier cities, and middle-income households, with festive sales contributing a quarter of annual new user acquisition. A key stimulus was a goods tax reform reducing levies on items under 2,500 rupees. Quick commerce emerged as the fastest-growing segment, with a GMV of $10-11 billion in 2025 (16%-17% of the total), benefiting from high population density, low-cost structures, and low online grocery penetration. Platforms like Amazon and Flipkart are expanding their instant delivery networks, now covering over 200 cities with more than 7,000 fulfillment centers.
02. Indonesia Plans New 0.5% Withholding Tax for E-commerce Platforms
The Indonesian government is planning to adjust its e-commerce tax mechanism, requiring platforms like Shopee and Tokopedia to withhold a 0.5% income tax on sellers' behalf to enhance tax compliance. This new regulation does not increase the tax burden for compliant sellers but merely changes the collection method to a unified platform payment. Experts note the policy aims to address the low tax compliance rate among online sellers, broaden the tax base, and promote fair competition between online and offline businesses. For cross-border sellers, this signifies a move towards more formalized and standardized tax administration in a key Southeast Asian market.
03. Honasa Consumer Reports Over 20% Revenue Growth in Q4
Indian consumer goods company Honasa Consumer, the parent of Mamaearth, is projected to report over 20% revenue growth for the fourth quarter of the fiscal year. Its flagship brand, Mamaearth, grew between 10%-20%, while newer brands like The Derma Co saw growth rates of 20%-30%. Key growth drivers include an offline distribution overhaul ("Project Neev," converting over 80% to direct operations) and the quick commerce channel, which contributes 10% of revenue with better cost efficiency than traditional e-commerce. The acquisition of BTM Ventures also added men's grooming brand assets. While accounting adjustments may affect reported growth, profit margins are expected to remain stable, though geopolitical risks pose potential cost pressures.
04. Vietnam Cracks Down on Counterfeit Goods, Fines Seven Stores
Authorities in Da Nang, Vietnam, have fined seven stores a total of over 215 million VND for selling counterfeit branded goods. The penalties followed a surprise inspection in early April, where officials seized 295 suspected fake handbags from brands like Gucci, Chanel, Hermès, and Fendi, along with 27 pairs of Nike sneakers, with a total value of nearly 178 million VND. The stores were found liable for infringement due to a lack of legitimate invoices and documentation. In addition to the fines, the stores were ordered to destroy all confiscated goods. This action is part of a focused market control phase ahead of the 2026 Da Nang International Fireworks Festival. The market management department has pledged to intensify inspections in tourist areas, commercial streets, and shopping centers while raising business awareness of legal compliance and guiding consumers to identify fakes. Repeat offenders or cases with criminal elements will be transferred to investigative agencies.