Reasons to Invest

Organized food and grocery retail market to reach $60 bn by 2025
Penetration of modern Food and Grocery retail is expected to reach 7% by 2025, compared to 4.5% in 2019
Online channel’s shares of overall grocery retail is expected to reach 3% by 2025

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
Refer Para 5.2.5.2 of FDI Policy 2017 and FDI Policy Clarification on Food Product Retail Trading 2018 for additional details

Please refer to FDI policy here.

100%

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 million 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 million
  • More than 40% of all purchases will be highly digitally influenced, up from 20-22% today

Government Support

National Retail Policy

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 of India has distributed rewards worth around $23.8 mn to 1 million customers for embracing 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%. India has a low level 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

2021
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