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 Retail market is set to cross the $ 1 tn mark by 2020 from $ 672 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 $ 672 bn in 2017.

The Retail market in India is projected to reach $ 1.3 tn, while the Indian e-commerce industry is expected to cross $ 100 bn mark by 2020.

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 92% 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 13% by 2020, thereby reducing the unorganized retail market’s share to 87%. 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
  • Growing urbanization

    40% of the population living in urban areas will account for 60% plus of consumption by 2025
  • Digitally influenced spending

    Projected to increase more than tenfold to $ 550 bn & account for 35% of all retail sales by 2025
  • Increase in online buyers

    Online buyers to be 350 mn by 2025 from existing 90 mn
  • Open

    Amendments for FDI in E-commerce 2016

    Guidelines for FDI in B2B and B2C E-commerce

  • Open

    Amendments for FDI in E-commerce 2018

    Guidelines for FDI in B2B and B2C E-commerce 

  • Open

    Direct Selling Guidelines

    It is envisaged in the guidelines that the State Government…

  • Open

    FDI Policy clarification on Food Product…

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

  • Open

    FDI policy revision for retail

    This policy intends to liberalise and simplify the FDI polic…

  • Open

    Model Shops and Establishments (Regulati…

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

  • Open

    National E-commerce Policy 2019 (draft)

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

Investible Projects

Investment Opportunities in Retail & E-commerce

  • Projects


  • Opportunity

    $2.5 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$1.4 mn

Redevelopment of Jinsi Haat Bazaar & Construction of Ancillary Buildings

State (s) Madhya Pradesh

$1.1 mn

Heritage Shopping Complex G Plus 2 work at Gopal Mandir Premises.

State (s) Madhya Pradesh

Major Investors

Data on Map

  • Ecommerce in India


Asked Questions

  • Explain the term “Web Hosting?

    A Remote Sensing satellite is intended for natural resource monitoring and management and operates from a Sun Synchronous Polar Orbit (SSPO).

  • List the major benefits of E-commerce?

    The major benefits of E-commerce are:

    1. Secure - More secure than a cheque.
    2. Fast - The transactions take not more than a few seconds
    3. Always on - The purchases can be made 24/7
    4. Convenient - Ease of purchasing
    5. Reduced cost price - Reduction of Marketing and Advertising Costs

  • What percentage of profit can I make on one sale online?

    There are many factors to consider when it comes to selling online and because of these factors, most of which are peculiar to different businesses, the percentage of profit on one sale online is not fixed and it varies.

    The percentage of profit you can make from one sale online can be significantly higher than what you would make from the same sale offline. That is due to the fact that online, the cost of providing the product/service is significantly lower than the cost of providing it offline.

    Thus, the percentage of profit one can make from one sale online, depends from on the nature of business.

  • 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 (link) 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 & Kashmir 
    vii) Karnataka 
    viii) Maharashtra 
    ix) Manipur 
    x) Rajasthan 
    xi) Uttarakhand 
    xii) Daman & Diu and Dadra and Nagar Haveli (Union Territories) 

  • Can I sell products of a sub brand if I already have an SBRT license?

    No, any addition to the product/ product categories to be sold under ‘Single Brand’ would require a fresh approval/ license from the Government.

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