If international investment is anything to go by, the answer is a resounding yes.

As online retailers in India invest heavily into ramping up their infrastructure including supply chains and better mobile solutions, Accel Partners predicts that by 2016, the Indian e-commerce market will reach $8.5 billion, an increase from 2014’s $2 billion.

While it’s still a small portion of the $638 billion in global mobile commerce volume as predicted by Goldman Sachs, the Indian e-commerce market is still attracting plenty of attention.

Indian online retailer, Flipkart, recently raised $1 billion from investors around the globe.

According to a report completed by ASSOCHAM and comScore, Flipkart is also the king of Internet traffic in India, ranking first among online retailers with 7.4 million unique visitors per month.

E-commerce giant Amazon is also ramping up its efforts to compete in the Indian online retail marketplace by making a $2 billion investment, expressing faith in the up and coming economy.

Much of the growth and success in the Indian e-commerce space is thanks to India’s stringent policies against foreign investment in the retail space, and policies to protect SMBs against big-name multinational retailers like Walmart, that have effectively stymied foreign expansion.

Because of foreign investment rules, both Amazon and Flipkart have to position themselves as a third-party marketplace, and are not allowed to sell directly to consumers. Instead, both companies need to extensively train merchants to use their online services.

India is also a fundamentally cash-based society thanks to limited access to credit cards, with most online orders being filled by COD (cash on delivery).

There is also the very real promise of a mobile-based economy thanks to the rise of consumer adoption of low-cost smartphones, furthering fleshing out the e-commerce play.