The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. As a result, the retail market is predicted to grow to $1.5 trillion by 2030, increasing $700 billion from the current estimated market size of $793 billion in 2020.
India's e-commerce market has witnessed phenomenal growth in the past recent years and is still flourishing. Foreign Direct Investment in E-Commerce in India can lead to an influx of capital, further enhancing its growth potential. India's e-commerce retail business, valued at $30 billion in 2019, is expected to grow at a 30 percent CAGR to reach $200 billion in gross merchandise value by 2026.
India ranks among the best countries to invest in the Retail space.
Factors that make India so attractive include:
In 2019, India was placed second in the Global Retail Development Index (GRDI). In FY20, the retail sector contributed $800 billion to India's GDP and employed 8% of the country's workforce (35 million people). By 2030, it is anticipated to have created 25 million new employment.
Recent policy changes allow 100% FDI in e-commerce under the automatic route for single-brand retail trading.
Contribution to India's GDP
Share in India's employment
Rise in consumption
Growth in organized retail
Rank #2 in Global Retail Development Index (GRDI) in 2019.
Expected to have more internet users (approximately 650 million) than the entire population of six G7 countries by 2021.
India to become the 3rd largest consumer economy by 2025 (consumption expenditure to increase 3 times to reach $4 trillion).
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