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

    $2.3 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$1.32 mn

Redevelopment of Jinsi Haat Bazaar & Construction of Ancillary Buildings

State (s) Madhya Pradesh

$0.98 mn

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

State (s) Madhya Pradesh

Major Investors

Data on Map

  • Ecommerce in India

Latest in Retail & E-commerce


Asked Questions

  • Where can I find regulations in food safety?

    Food Safety and Standards Authority of India is the regulatory authority and has created a comprehensive policy framework on food safety and standards in India. For more information, click here.

  • Can my company use plastic bags and plastic packaging?

    According to the Plastic Waste Management Rules 2016, there is a complete ban of the manufacture, supply and storage of polythene bags and other plastic items such as cups, plates, spoons, and glasses in many states with a partial ban in some states like Maharashtra, West Bengal, Goa, Kerala etc. Some states permit polythene bags above 50 microns thickness.

    For more information, click here.

  • Are there any required approvals and licenses or registrations that need to be procured in order to import apparel or other retail goods?

    Approval or licensing requirements depend on the product proposed to be imported to India. Further, in the case of proposed foreign investment, compliance with relevant provisions of the FDI Policy 2017 will have to be ensured. 

    Additionally, any person interested in importing goods into India must follow certain rules and guidelines as laid down by The Companies Act 2013, RBI guidelines etc. They must pay GST, Income Tax and other taxes as per state ruling.

    The Directorate General of Foreign Trade (DGFT) issues Import Export (IE) Codes which are required for importing or exporting goods. The issued IE Codes can be used by the entity throughout its existence and don't require any renewal or filing.

  • Are there any legal requirements regarding apparel labelling?

    There are legal labelling requirements regarding garments in loose form in retail stores, which can be found below through the Legal Metrology Rules, 2011

    • Name or Description of Product
    • Size: Internationally recognizable size indicators - S, M, L, XL, etc. along with the details in metric notation in terms of cm or m as the case may be. Alternatively, the words ‘TO FIT SIZE’ instead of only ‘Size’ on the label may be used. 
    • Maximum Retail Price
    • Name, full address and customer care number of the manufacturer
  • Are there specific laws regarding the termination of employee contracts?

    According to the Shops and Establishments Act, no employer shall dispense with the services of an employee who has been in their continuous employment for not less than three months, without giving at least one month's notice.

    However, if the notice period prescribed under the Employment Contract of the employee is more than one month, the Company will have to provide the notice period as prescribed under the Contract. Please refer to the Shops and Establishments Act of the respective state for further details.

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