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Information Technology
As the global economic landscape continues to evolve, India's e-commerce sector is positioned for significant growth, driven by technological advancements and rising consumer demand. According to a recent report by Ernst & Young (EY), the e-commerce industry in India is expected to witness the highest salary increments in 2025, surpassing 10%. This trend underscores the sector's resilience and its role in shaping India's digital economy.
The EY report highlights that while overall salary increments in India are projected at 9.4% for 2025—slightly lower than the 9.6% recorded in 2024—the e-commerce sector is poised to outperform this average with hikes reaching up to 10.5%[1][2]. This substantial increase is attributed to the rapid expansion of digital commerce, increased consumer spending on online platforms, and technological advancements in areas like artificial intelligence (AI) and data analytics[3][4].
Several key factors contribute to the impressive salary growth in the e-commerce sector:
While the e-commerce sector is leading in terms of salary hikes, other industries such as automotive, pharmaceuticals, manufacturing, and financial services are also showing steady salary trends. However, certain sectors like IT and IT-enabled services are experiencing a slowdown due to automation and cost optimization efforts.
Despite the promising outlook for the e-commerce sector, companies face significant challenges in attracting and retaining skilled professionals. The report reveals that 80% of organizations are struggling to find qualified employees, particularly in high-demand industries such as IT and energy[3]. Attrition rates have slightly decreased from 18.3% in 2023 to 17.5% in 2024, but the shortage of skilled professionals remains a pressing concern[2][3].
To bridge this skills gap, companies are adopting several strategies:
The EY report also highlights the growing importance of AI in compensation strategies. Sixty percent of Indian employers are keen to leverage AI for employee rewards and compensation by 2028. This move towards AI-driven compensation involves real-time pay equity analysis and customizable benefits, enabling organizations to personalize their rewards and optimize workforce performance[2][5].
The e-commerce sector in India is set for remarkable growth, with salary hikes surpassing industry averages. As digital commerce continues to expand, it will be crucial for businesses to prioritize strategic workforce investments and innovative compensation strategies. By embracing AI, flexibility, and well-being initiatives, companies can attract and retain top talent, ultimately driving economic stability and growth in the sector.
This article optimizes visibility through the use of high-search-volume keywords such as "e-commerce sector in India," "salary hike projections," "digital commerce," "AI-driven compensation," and "skilled workforce." The inclusion of subheadings and bullet points enhances readability and facilitates easy access to key information.
