Information and communication technology has transformed the lives of many people today. Developing country like India has the potential of achieving brisk economic and social development by building an economy based upon an ICT enabled and networked Business sector. Internet penetration in India has been increasing exponentially – in 2006 there were only 21 million active internet users, which rose to 243 million users by June 2014. Simultaneously, the number of active mobile internet users grew to 185 million. Internet dissemination and mobile penetration has brought about a novel revolution in the e-commerce market in India. India’s ecommerce market is estimated to have reached about $10-16 billion last year, with an annual increase of 88% and analysts project that by 2020 it could be worth a whopping $60-80 billion. E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. This paper attempts to analyze how ICT has brought about the E-commerce revolution in India. In the process the paper also attempts to examine the Key drivers of growth, benefits and the opportunities and challenges in the growth of E-commerce in India.