India - The Top Retail Destination

The Retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. The Overall Retail market is set to cross the $ 1.7 tn mark by 2020 from $795  bn in 2017. India’s e-commerce market is also set to grow at a CAGR of 30% for gross merchandise value to be worth $ 200 bn by 2026.

India ranks among the best countries to invest in Retail space. Factors that make India so attractive include 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 has overtaken China to grab the top spot in A.T. Kearney's 2017 Global Retail Development Index.
  • Retail is India's largest industry, currently accounting for over 10% of the country's GDP and 8% of total employment.

Recent policy changes allow 100% FDI under the automatic route for single-brand retail trading.

For further details, please refer FDI Policy

  • 10 %

    Contribution to India's GDP

  • 8 %

    Share in India's employment

  • 4 X

    Rise in consumption

  • 3 X

    Growth in organized retail

E commerce business in India

India ranked No.1 in Global Retail Development Index (GRDI) in 2017

Retail investors in India

India to have more internet users (650 mn) than the entire population of six G7 countries by 2021

Business opportunities in ecommerce

India to become third-largest consumer economy by 2025 (consumption expenditure to increase by a factor of 3 to reach $ 4 tn)

Industry Scenario

The Retail industry in India has experienced a healthy growth over last few years achieving a total market size of $795 bn in 2017.

The Retail market in India is projected to reach $1.375 tn, while the Indian e-commerce industry is expected to cross  200 bn mark by 2026.

The E-commerce market in India is also set to grow at a CAGR of 30% for gross merchandise value to reach $200 bn by 2026, and have a market penetration of 12% compared to 2% currently.

India is largely an unorganized retail market, contributing 88% to the total retail sector in India. The organized retail market is currently valued at $60 bn, while the unorganized market holds the rest. The share of the organized retail market is projected to increase to 22-25% by 2021, thereby reducing the unorganized retail market’s share to 77%. The organized retail market, therefore, has the potential to reach approximately $140-160 bn.

Growth Drivers

  • Growing income

    3X rise in average household income to reach $18.4 mn in 2020
  • Increased online spending

    Online buyers to be 350 million by 2025 from existing 90 million, with digital spending Projected to increase more than tenfold to $550 bn & account for 35% of all retail sales by 2025
  • Growth of rural consumption

    Rural per capita consumption will grow 4.3 times by 2030, compared to 3.5 times in urban areas
  • Young millennial households

    India will add nearly 90 million new households headed by millennials, who were born into liberalized India. The average age of the country by 2025 will be 29 with the world’s largest skilled manpower pool of 600 million+ by 2025.
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    Amendments for FDI in E-commerce 2016

    Guidelines for FDI in B2B and B2C E-commerce

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    Amendments for FDI in E-commerce 2018

    Guidelines for FDI in B2B and B2C E-commerce 

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    Cabinet approves proposal for Review of…

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    Cabinet approves proposal for Review of…

    The Union Cabinet chaired by the Prime Minister Shri Narendr…

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    Direct Selling Guidelines

    It is envisaged in the guidelines that the State Government…

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    E-Commerce guidelines for Consumer Prote…

    The Department of Consumer Affairs proposes to issue guideli…

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    FDI Policy 2019 (Press Note 4)

    The Government of India has reviewed the extant FDI policy o…

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    FDI Policy clarification on Food Product…

    Allows 100% FDI under Government approval route for retail t…

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    FDI policy revision for retail

    This policy intends to liberalise and simplify the FDI polic…

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    Model Shops and Establishments (Regulati…

    It proposes to allow malls, cinema halls, restaurants and ot…

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    National E-commerce Policy 2019 (draft)

    The National e-Commerce Policy addresses six broad issues of…

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    National Traders' Welfare Board

    To identify policy measures to achieve the objective of welf…

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    New FDI e-Commerce Policy on e-Commerce…

    For the growth of the e-Commerce sector, a conducive regulat…

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    The Consumer Protection (e-Commerce) Rul…

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    The Consumer Protection Act, 2019

    To establish authorities for timely and effective administra…

Major Investors

Data on Map

  • Ecommerce in India

Latest in Retail & E-commerce


Asked Questions

  • What are the different states that allow Multi Brand Retail Trading (MBRT) and are there any clauses under the rule?

    As per para of the FDI Policy, 2017, the following states allow MBRT subject to the conditions mentioned in the policy:
     i.      Andhra Pradesh
     ii.     Assam
     iii.    Delhi
     iv.    Haryana
     v.     Himachal Pradesh
     vi.    Jammu &amp Kashmir
     vii.   Karnataka
     viii.  Maharashtra
     ix.    Manipur
     x.     Rajasthan
     xi.    Uttarakhand
     xii.   Daman & Diu and Dadra and Nagar Haveli (Union Territories)

    For more information, click here.

  • Are we allowed to sell products of a sub brand if we have a Single Brand Retail Trade (SBRT) license?

    No, any addition to the product/product categories to be sold under 'Single Brand' would require a fresh approval of the Government.

    For more information, click here.

  • How much FDI is allowed under single brand product retail?

    100% FDI is allowed under single brand product retail via automatic route.

    For more information, click here.

  • What are the rules for sale of goods in online e-commerce?

    An e-commerce entity will not be permitted more than 25% of the sales affected through its marketplace from one vendor or their group companies.

    For more information, click here.

  • What is the FDI policy for Duty free shops?

    100%  FDI is allowed under Duty free shops via automatic route.

    For more information, click here.

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