Trade Analytics
Retail
India’s retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18 million) in 2018.

Indian Retail Industry Analysis

Latest update: October, 2019

Growth

 

Last Updated: October, 2019

The Indian retail industry is one of the fastest growing in the world. Retail industry reached to Rs 66.39 lakh crore (US$ 950 billion) in 2018 at CAGR of 13 per cent and expected to reach Rs 76.87 lakh crore (US$ 1.1 trillion) by 2020.

India is the fifth largest preferred retail destination globally. The country is among the highest in the world in terms of per capita retail store availability. India’s retail sector is experiencing exponential growth, with retail development taking place not just in major cities and metros, but also in Tier-II and Tier-III cities. Healthy economic growth, changing demographic profile, increasing disposable incomes, urbanisation, changing consumer tastes and preferences are the other factors driving growth in the organised retail market in India.India ranked 77th in World Bank’s Doing Business 2019.

The modern retail market in India is expected to grow from Rs 94,421 crore (US$ 13.51 billion) in 2016 to Rs 1.86 lakh crore (US$ 26.67 billion) in 2019.

India’s population is taking to online retail in a big way. Online retail sale is forecasted to grow at the rate of 31 per cent to reach Rs 2.28 lakh crore (US$ 32.70 billion) in 2018@. Revenue generated from online retail is projected to grow to Rs 4.19 lakh crore (US$ 60 billion) by 2020. Organised retail penetration is expected to increase to 18 per cent in 2021 from an estimated nine per cent in 2017. India is expected to become the world's third-largest consumer economy, reaching Rs 27.95 lakh crore (US$ 400 billion) in consumption by 2025. ^Increasing participation from foreign and private players has given a boost to Indian retail industry. India’s price competitiveness attracts large retail players to use it as a sourcing base. Global retailers such as Walmart, GAP, Tesco and JC Penney are increasing their sourcing from India and are moving from third-party buying offices to establishing their own wholly owned/wholly managed sourcing and buying offices. India’s retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18 million) in 2018. * Revenue of India’s offline retailers, also known as brick and mortar retailers, is expected to increase by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion) ^ in FY20.

The Government of India has introduced reforms to attract Foreign Direct Investment (FDI) in retail industry. The government has approved 51 per cent FDI in multi-brand retail and 100 per cent in single brand retail under the automatic route which is expected to give a boost to ease of doing business and Make in India and plans to allow 100 per cent FDI in e-commerce. Cumulative FDI inflow in retail between April 2000 to March 2019 stood at Rs 11,601 crore (US$ 1.66 billion).

India will become a favourable market for fashion retailers on the back of a large young adult consumer base, increasing disposable incomes and relaxed FDI norms.

Notes: ^ - According to a study by Boston Consulting Group,@- According to eMarketer, E – Estimated, * - according to Anarock Retail

 

Indian Retail Industry Report (October, 2019)
Download PDF Download PDF  (Size: 1.69 MB )

Click to access the Retail Industry Archived Report

Retail India

Market size over the past few years (US$ billion)
Retail India

 

Posters

Brand India Pharma

RETAIL INDIA

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

Agri Export Policy - Towards smoother trade, wider global presence

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg Indian Tourism Industry: An Insight
IBEF, Knowledge Centre

During the celebration of 73rd Independence Day, Prime Minister Mr Narendra Modi addressed the nation from the Red Fort and underlined that India ‘has mu...

author_alok_kirloskar1.jpg From smart water pumps to drones: Technology is changing Indian farms!
Alok Kirloskar, Executive Director, Kirloskar Brothers Limited

Disruptive technologies and innovations in application engineering are fast changing farming practices in India. From preparing the land to sowing, to reaping and mentori...

author_logo-ibef1.jpg Mobile Phone Manufacturing in India: Towards A Brighter Future!
IBEF, Knowledge Centre

India is the world’s second largest mobile phone manufacturer after China. And with the current pace of growth, India is not far from becoming the leading handset m...

author_logo-ibef1.jpg Solar energy generation in India: Lighting lives!
IBEF, Knowledge Centre

The generation of power from solely renewable sources like solar energy is a prime focus of India’s energy planning. Started in the early 1970s, the process of crea...

author_logo-ibef1.jpg Digital payment industry in India
IBEF, Knowledge Centre

From being primarily a cash-obsessed economy, India’s digital payment story is new but exciting. Driven by progressive regulatory policies and increased use of mobi...

author_logo-ibef1.jpg The Indian Hotel Industry, Sunshine Ahead
IBEF, Knowledge Centre

Ever expanding domestic tourism, increasing foreign tourist arrivals, forex earnings growth, high airline passenger numbers and muted supply growth has put the Indian hot...

ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password