Reasons to Invest

Third largest grocery market in the world.
Grocery and gourmet is expected to be one of the biggest D2C categories by 2027.
Online channel's shares of overall grocery retail is expected to reach a market size of ~$24 Bn, with a 53% CAGR over 2019.

How We Help Investors

Research Content Provider

Location Analysis

Policy Advisory/Representation

Stakeholders Meeting

Issue Resoution

Regulatory Clearance Facilitation

FDI Norms

100% FDI under the Government approval route is allowed for retail trading, including through e-commerce, in respect of food products manufactured and/or produced in India.

FDI Allowed

Growth Drivers

The demographics of the Indian population are rapidly changing, and these are set to drive consumption growth in this decade. By 2030 it is estimated that:

  • Per-capita income is estimated to rise from $2,000 currently to around $5,700 in 2030, growing at an 11% CAGR.
  • An estimated 600 Mn people, accounting for 40% of India’s population, will live in urban centers, from the current 34%
  • Close to 76% of the households will be nuclear families, which on average consume 20-30% more than joint families.
  • Number of affluent and elite households is set more than double to 80 million households, up from current 36 Mn.
  • More than 40% of all purchases will be highly digitally influenced, up from 20-22% today.

Government Support

National Retail Policy (Draft)

Through the policy, the government intends to simplify the rules and regulations for the retail sector and expedite growth

National e-Commerce Policy

Through the policy the government intends to institue a robbust framework for achieving holistic growth of the e-commerce sector

Digital Payments

The government is backing technologies such as UPI and RuPay networks to promote digital transactions and increase adoption in smaller cities. In the FY22 Budget, an INR 1,500 Cr scheme was proposed to financially incentivize digital payments.

5G Network

Heavy investment made by the Government of India in rolling out fibre network for 5G will aid the long term growth of food retail through the online channel

Digital India

Aims to create a trillion dollar online economy by 2025 by enabling initiatives such as Bharat Net, Jan-Dhan-Aadhar-Mobile (JAM) trinity, and  Bharat Interface for Money (BHIM)

Consumer Protection (E-Commerce) Rules, 2020

Rules delineate roles and responsibilities for marketplace and sellers, and will reinforce competition and efficiency within the Indian e-commerce market

Allied Sectors

Food Processing and Logistics sectors are allied with Food Retail industry.

Indian food processing output is set to double from $263 bn in 2019-20 to $535 bn 2025-26, growing at a CAGR of 12.6%. The industry is evolving rapidly with emerging product categories like added dairy products, frozen meat, RTE, and snacks driving growth.
Under schemes such as Mega Food Parks and Pradhan Mantri Kisan Sampada Yojana robust & modern food processing infrastructure is being developed across the nation. Also, the recently announced INR 10,900 Crore PLI scheme for the Food Processing sector is set to indirectly benefit the food and grocery retailing sector in the longer run, ensuring a strong supply for food retail businesses in India

Major Investors

Invest India Timeline


Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity