E-invoicing could unlock over INR 30,000 crores for the Indian economy

Avalara Inc., a leader in modern tax compliance automation, has released a global report in partnership with the Center for Economics and Business Research (Cebr) quantifying the economic impact of electronic invoicing (e-invoicing) adoption.
According to the study, full scale adoption of e-invoicing in India could unlock approximately INR 32,035.71 crores (US$3.7bn) in annual economic value and save the average Indian business approximately INR 1.09 crores (US$0.13m) each year driven by productivity gains, reduced fraud, and faster payments.

The report spans six major economies including India, Australia, the United States, the United Kingdom, Germany, and France. The findings reveal that India leads globally in e-invoicing adoption and market penetration, with over 80 per cent of invoices received and 70 per cent issued electronically, outpacing the global averages of 71.5 per cent and 68.2 per cent respectively. However, it also highlights the need to deepen integration, especially for micro, small, and medium enterprises (MSMEs), and smaller businesses.

“India has emerged as a global leader in both speed of e-invoicing adoption and e-invoicing penetration in various segments of the economy, but we’re only scratching the surface of what this technology can deliver,” said Anil Paranjape, General Manager, India Operations, Avalara. “Our research with Cebr proves that the faster we help businesses transition to electronic invoicing, the more we can do to unlock billions in productivity and day-to-day efficiencies. While compliance has improved, broader B2B integration and MSME and SMB inclusion are now critical to realise the full INR 32,035.71 crores (US$3.7bn) opportunity. E-invoicing must evolve beyond being a tax compliance requirement into a strategic business enabler.”

The average Indian business adopting e-invoicing processes 3,827 invoices per week, one of the highest globally, leading to annual productivity savings of over INR 1.09 crores (US$0.13m). While many of the early benefits of e-invoicing adoption have been absorbed through government mandates under GST—now applicable to businesses with turnover above INR 5 crores (US$0.58m)—India still recorded the highest global satisfaction rate, with 68 per cent of businesses satisfied and 50 per cent extremely satisfied with e-invoicing’s performance.

Despite high adoption, challenges still persist as 64 per cent of Indian businesses use e-invoicing solely for tax reporting, not for exchanging invoices with partners which leads to limiting systemic impact. Small businesses continue to lag, with just 37 per cent of their invoices electronic, compared to 72 per cent for larger firms. Barriers such as system integration and staff training were cited by 43 per cent of global respondents.

Globally, e-invoicing offers major economic upside: the report identifies a combined INR 5,333,513.43 crores (US$ 614.8bn) opportunity across the six markets studied. On average across all six markets, e-invoicing shortens payment cycles by 1.4 days, cuts fraud and tax fines by around 30 per cent, and saves 39 minutes per invoice processed.

The report also highlights India’s high exposure to tax fines and fraud, signaling an opportunity for more robust use of digital invoicing tools. Indian firms reported the highest average annual losses among all surveyed markets, with INR 35.76 lakhs (US$41,224) lost to tax fines and INR 24.59 lakhs (US$28,347) to invoice-related fraud.

India’s digital invoicing journey is part of a larger international shift. As of January 2025, all German businesses must be capable of receiving e-invoices, and 41 per cent of French firms are already preparing for a similar 2026 mandate. Although there are no national laws yet in the US or UK, more than half of businesses in both countries say they support e-invoicing legislation.

As more countries make strides towards e-invoicing compliance, India can continue to lead with further adoption and systemic changes to unlock the full economic impact of e-invoicing value. The international exchange of e-invoices amongst the biggest companies in international commerce will present more opportunities and India should continue to lead on this front.

Methodology
The study surveyed 1,720 businesses across six major markets (U.S., UK, France, Germany, India, and Australia), analysing the productivity, financial, and compliance impacts of full e-invoicing adoption. Economic modelling, conducted by Cebr, focused on two main elements: to exclusively target B2B companies with at least 10 employees; and to quantify the impacts of e-invoicing at an individual invoice, per-business and ultimately economy-wide level, with all monetary figures converted and presented consistently in US$.

About Avalara
Avalara offers tax compliance automation software solutions for 43,000+ business and government customers in over 75 countries.

The business and economic benefits of e-invoicing