DUBLIN--(BUSINESS WIRE)--The "India Gift Card and Incentive Card Market Intelligence and Future Growth Dynamics (Databook) - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

India's burgeoning gift card sector is forecasted to grow robustly, reaching US$8.9 billion in 2024 and further expanding to an estimated US$15.7 billion by 2028. Underpinning this growth is a compound annual growth rate (CAGR) of 15.3% from 2024 to 2028.

A significant factor contributing to this trajectory includes the increasing adoption of gift cards in Tier II and Tier III cities, marking an evolution in the payment tools landscape within these regions. Digital gift cards, in particular, are witnessing higher popularity compared to their physical counterparts.

Corporate and Consumer Adoption

The trend of corporate entities and digital platforms offering gift card solutions continues to gain momentum in India, showcasing the rising preference for this mode of gifting and incentives. Notably, platforms such as the Open Network for Digital Commerce (ONDC) are launching innovative gift card propositions such as the ONDC Network Gift Card, which diversifies the choice for consumers, offering a selection across multiple categories. This is markedly aligned with the festive season trends, where gift card sales are typically at their zenith.

Gifting Industry Context

Despite gift cards gaining traction, they still represent a modest fraction of India's extensive gifting industry, which permeates cultural and social traditions such as weddings and festivals. Nonetheless, signals from online gifting platforms indicate that both corporate and personalized gifting markets are expanding at a significant pace, thus presenting a substantial opportunity for growth within the gift card domain.

Regulatory Considerations

In a move with potential beneficial implications for the industry, the government of India is contemplating the provision of relief from the Goods and Services Tax (GST) imposed on gift cards and vouchers. This initiative could address double taxation concerns and streamline taxation guidelines for these payment tools, potentially influencing market dynamics favorably.

Market Drivers

The market growth in 2023 has been supported by various factors, including the burgeoning e-commerce sector, the utilization of gift cards to incentivize remote employees, the emphasis on digital gifting solutions, and initiatives across industries to stimulate recovery and growth. These elements collectively underlie the growth across both retail and corporate segments within the gift card market.

The industry's ongoing expansion, together with consumer behavior insights and detailed market analysis, heralds an era of opportunity and innovation. Notably, the comprehensive understanding of market dynamics, consumer behavior, and strategic channel distribution will be crucial in propelling India's gift card and incentive card segment towards a more significant economic impact in the coming years.

Key Attributes:

Companies Featured

• Tanishq
• D-Mart
• Reliance Fresh
• Amazon (Cloudtail + Appario)
• Reliance Digital
• Samsung
• Reliance Digital Express Mini/Jio
• Croma
• Big basket

For more information about this report visit https://www.researchandmarkets.com/r/9ay88e

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