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Tier-2 & Tier-3 cities of Madhya Pradesh emerge key contributors in India’s e-commerce growth this Diwali
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Tier-2/3 cities in MP led India’s 2025 Diwali e-commerce growth, marking a shift in geographic seller dynamics.
During the 2025 Diwali season, tier-2 and tier-3 cities in Madhya Pradesh (MP) played a disproportionate role in India’s e-commerce surge. The city of Indore alone employed 25,000 gig workers, and sellers from MP accounted for about 4% of a major platform’s national base. Logistics firm Shiprocket saw shipments surge 63% year-on-year in MP. Lower GST rates and improved digital adoption were driving factors. Analysts see MP and similar states as the next frontier for India’s digital commerce expansion.