100% FDI allowed in Single Brand retail trading under automatic route.
The retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. By 2020, the retail market in India is set to cross the USD 1 tn mark, growing from USD 630 bn in 2015. India’s e-commerce market is also set to grow at a 30% compound annual growth rate for gross merchandise value to be worth USD 200 bn by 2026.
With the second largest population in the world, a middle class of 600 mn people, increasing urbanisation, rising household incomes, connected rural consumers and increasing consumer spending, India is one of the best countries to invest in retail space.
Recent Policy Changes allow 100% FDI in almost all segments in Retail.
for more details refer FDI Policy
The Indian retail sector has experienced a healthy growth over last few years achieving a total market size of USD 630 bn in 2015.
By 2020, the Indian retail market is projected to reach USD 1.2 tn.
India’s e-commerce market is also set to grow at a 30% compound annual growth rate for gross merchandise value to be worth USD 200 bn by 2026 and market penetration will increase to 12% from existing 2%.
India is largely an unorganized retail market, contributing 92% to the total retail sector in India. Currently, the organized retail market is valued at USD 60 bn, and the unorganized market holds the rest. The organized retail market is projected to increase to 13% by 2020, with the unorganized market reducing to 87%. Organized retail therefore, has the potential to reach approx. USD 140-160 bn.
FDI inflows (in USD) in retail during November 2014 – November 2017 (Invest India estimate)
FDI allowed in Single Brand Product Retail (Online Presence Allowed) under automatic route.
FDI allowed in e-commerce (B2B & Marketplace for B2C) under automatic route
FDI allowed in Cash & Carry Wholesale Trading under automatic route
FDI allowed under Duty-Free Shops under automatic route
FDI allowed in Food Product Retail under automatic route
FDI is allowed in Multi-Brand Product Retail (Online Presence Not Allowed) under government route.
May 2017 - The world’s largest furniture retailer, IKEA, plans to invest USD 3 bn in setting up 25 stores in India, planning to double their sourcing from India to USD 717 mn from about USD 358 mn
November 2017 - Amazon’s third capital infusion of USD 435 mn into its India business this year takes its total investment in Amazon Seller Services to USD 2.6 bn
November 2017 - Ahmedabad-based Havmor Ice Cream Ltd has been fully acquired by South Korean major LOTTE Confectionery for USD 153 mn