The development of e-retailing has changed the retail environment in India, giving customers more convenience and access to a bigger selection of goods. In India, the use of mobile devices, rising internet penetration, and the availability of inexpensive data plans have all contributed to the expansion of e-retailing. Due to the shutdown of physical establishments and government-imposed lockdowns, the COVID-19 epidemic has further accelerated the expansion of e-retailing in India. As a result, more and more people are choosing to shop online. However, the expansion of e-retailing has also brought with it several difficulties, such as the effect on conventional brick-and-mortar merchants, worries about data privacy, and the requirement for a strong logistics and supply chain infrastructure. This paper explores the effects of COVID-19 on the industry and provides a summary of the development of e-retailing in India, highlighting its primary drivers and obstacles. The prospects for e-retailing in India are also covered in the paper, along with the consequences for the retail sector and the Indian economy as a whole.