E-commerce has been a key driver of employment generation in India and online vendors have likely generated 15.8 million (almost 1.6 crore) jobs in the country that includes about 3.5 million (35 lakh) for women, a report said on Wednesday. 

Released by Union Commerce Minister Piyush Goyal at an event here, the report by Pahle India Foundation (PIF), a New Delhi-based policy research institute, said that 1.76 million retail enterprises in the country now participate in the e-commerce activity.

According to the report findings, A higher percentage of tier 3 city consumers spend more than Rs 5,000 per month on online shopping as compared to consumers from bigger cities. Titled ‘Assessing the Net Impact of e-Commerce on Employment and Consumer Welfare in India’, the report noted that on an average, online vendors employ 54 per cent more people and almost twice the number of female employees, compared to offline platforms.

E-commerce is now expanding into new territories like tier 3 cities. According to the report, each e-commerce vendor, on an average, employs about nine people, of which two are female. On the other hand, each offline vendor employs about six people, of which only one is woman.

There has been a hike in employment across skill levels in the e-commerce sector. “Vendors have experienced improved business performance parameters since listing online, including higher sales and profits,” said the report.

Overall, more than two thirds of the online vendors interviewed experienced an increase in online sales value and profits in the past year and 58 per cent saw an increase in both. With this finding, there is a strong business case for offline vendors to list on e-commerce platforms or pursue an omni-channel strategy.

Speaking at the event, Minister Goyal said that the growth of e-commerce should be citizen-centric and must democratise the distribution of benefits among the larger section of society in the country.