Click, Not Print: The Digital Slip That Could Add Crores to India’s GDP

Avalara and Centre for Economics and Business Research (CEBR) released a new report which estimates that India can unlock Rs 32,035 crore of economic value every year by adopting e-invoicing at scale. India is the world leader in e-invoice penetration, but the gains are still unequally shared.

 

Key findings of the study:

 

1. India handles over 3,800 invoices weekly per enterprise—world leaders in this context—but only 37% of MSMEs' invoices are electronic, compared to 72% for large enterprises.

 

2. The average Indian firm would save Rs 1.09 crore annually in using e-invoicing through faster payment cycles, reduced fraud, and fewer tax penalties.

 

3. While satisfaction is extremely high (68% of firms), Indian firms lose Rs 35.76 lakh annually to tax penalties and Rs 24.59 lakh to invoice fraud.

 

4. Although most companies apply e-invoicing mainly for tax purposes rather than operational effectiveness—constraining its potential for change.

 

5. India is at the forefront of adoption but behind others in applying it. Germany and France are moving towards mandatory e-invoicing for all firms by 2025–26.

 

What's Next?

Experts call for a change of mindset: utilize e-invoicing as a business enabler, not merely a regulatory compliance tickbox. Focused reforms to bring on board MSMEs, automate digital payments, and drive B2B connectivity can unlock gargantuan opportunities.

 

Sources: BusinessWorld, Avalara-CEBR Study, The Invoicing Hub, TaxGuru