Retail Industry in India

The Retail sector in India has seen a lot of investments and developments in the recent past.

• India's fastest consumer growth is coming from Tier-II and Tier-III cities, which are adding nearly 100 million new consumers to branded and organised retail by 2030. The rise of these cities is driving national consumption patterns, digital payments, and the expansion of D2C brands with faster trial and repeat purchases.​
• India's retail sector leasing surged to 3.2 million square feet in Q3 2025, marking a 65% YoY growth across the top seven cities. Delhi-NCR led the leasing with new mall constructions, facilitating new store openings in key micro markets. D2C brands are expanding their physical presence in fashion, apparel, jewellery, cosmetics, and wellness categories.
• India’s retail sector saw continued acceleration with over 130 new store openings in October 2025 across various brands including hypermarkets, supported by significant funding boosts, signaling expansion and consumer demand growth.
• India's retail market is poised to reach US$ 1 trillion by 2030. This growth is driven by rising incomes, faster digital adoption, and the rise of an aspirational consumer class. New retail formats like e-commerce, quick commerce, and D2C brands are scaling faster than conventional companies, indicating a structural shift in shopping habits and huge investor interest.
• In August 2025, Reliance Retail announced plans to invest Rs. 40,000 crore (US$ 4.67 billion) over three years to set up Asia’s largest integrated food parks, leveraging AI, robotics and sustainable technologies to drive its target of Rs. 1,00,000 crore (US$ 11.67 billion) in annual FMCG revenue.
• India's luxury retail market is experiencing rapid growth, with leasing activity increasing by 90% YoY in Q1 2025, driven by the expansion of global and domestic brands across major cities. This surge is attributed to evolving consumer demographics, rising incomes, and the country's potential to become a leading luxury market in the Asia-Pacific region.
• Retailers are expanding their private label offerings to meet this demand. For instance, Reliance Retail is intensifying its focus on private labels in the consumer durables sector, aiming to challenge established global brands.
• A report by EY indicates that 52% of Indian consumers are opting for private label products in 2025, with 70% acknowledging that these brands are increasingly offering better quality products.
• AstorMueller AG has entered India’s retail market through a joint venture with Gaurik Group called Nuvora, aiming to launch 10 to 12 exclusive Bugatti stores across the top 20 cities in FY26.
• According to the IAMAI-Kantar 'Internet in India Report 2024', out of 332 million online shoppers, 105 million used only cash-on-delivery (COD) as their payment method during online shopping.
• Xiaomi aims to locally source over 55% of smartphone components by 2025, up from around 35% in 2023, boosting domestic value addition from 18% in 2023 to 22% by 2025.
• On June 9, 2025, Shein and Reliance Retail extended their partnership by preparing to export India-made Shein-branded apparel globally targeting the US and UK within six to twelve months, while expanding their supplier base from 150 to 1,000 local manufacturers.
• On July 12, 2025, Prada Group dispatched a supply-chain team to Kolhapur to meet local Kolhapuri chappal artisans and explore a Made in India collaboration.
• On July 15, 2025, Lululemon confirmed its India debut via a strategic partnership with Tata Cliq, planning both a physical store and presence on Tata Cliq Luxury and Fashion platforms in late 2026.
• In FY25, Zudio more than doubled its store count, from approximately 341 to 765 outlets across 235 cities, driving its milestone of over Rs. 8,569 crore (US$ 1 billion) in revenue.
• In 2024, 27 global brands entered India, nearly double the pre-pandemic average of 12, reflecting the country’s rise as the world’s third-largest retail market, fuelled by a young, tech-savvy consumer base, expanding mall infrastructure and rising disposable incomes.
• In FY25, Nykaa completed its largest-ever physical retail expansion by adding 50 stores, bringing its total to 237 across 79 cities.
• In February 2025, Tim Hortons India opened its sixth store in Mumbai, located at the First International Financial Centre in Bandra Kurla Complex, increasing its nationwide total to 39 outlets.
• IKEA initiated a second-wave expansion in August 2025 by emphasising stronger local sourcing, improved logistics, and a deeper omnichannel approach after having previously invested over Rs. 10,500 crore (US$ 1.23 billion) in India.
• On February 24, 2025, H&M India Director, Ms. Helena Kuylenstierna confirmed at the Great India Retail Summit that H&M India now operates 65 stores with the 66th opening soon in Gangtok and has achieved 85% use of recycled or sustainably sourced materials, progressing towards 100% by 2030 target.
• In July 2025, the Andhra Pradesh government allotted LuLu Group a 99-year lease over 13.74 acres on Vizag’s Beach Road and 4.15 acres at Vijayawada’s old bus depot to develop mega shopping malls offering approximately 13.5 lakh sq ft and 2.23 lakh sq ft respectively under special tourism policy exemptions.
• As of March 2025, Reliance Retail operates 19,340 stores across with a retail area of over 77.4 million sq. ft. in India.
• The annual inflation rate based on all India Consumer Price Index (CPI) number is 1.55% for the month of July 2025. In July 2025, rural food inflation stood at -1.74%, while urban food inflation was-1.90%.
• India’s retail trading sector attracted Rs. 41,645 crore (US$ 4.86 billion) FDIs between April 2000-June 2025.
• India’s consumer and retail sector closed 139 deals worth Rs. 32,562 crore (US$ 3.8 billion) in Q1 CY25 marking a 65% surge in deal volume and a 29% rise in value over the previous quarter, led by major deals such as Temasek’s Rs. 8,569 crore (US$ 1 billion) investment in Haldiram’s and Wilmar International’s Rs. 12,339 crore (US$ 1.4 billion) acquisition of Adani Wilmar’s staples business.
• By 2030, India’s per capita income is expected to exceed Rs. 3,49,000 (US$ 4,000) from Rs 2,34,859 (US$ 2,740) in FY25, unlocking new business opportunities across sectors. Expanding digital commerce, growing access to credit, and fintech-driven financial inclusion further accelerate this consumption boom.
• India's Rs. 1,71,860 crore (US$ 20 billion) cosmetics and beauty market are poised to benefit from the India-UK free trade agreement (FTA), which will reduce duties on cosmetics and other products. The FTA will directly benefit retailers like Nykaa, Reliance Tira, and Shoppers Stop, as well as e-commerce platforms like Amazon and Myntra, which sell premium beauty products.
• India’s private consumption has nearly doubled to Rs. 1,83,30,900 crore (US$ 2.1 trillion) in 2024 from Rs. 87,29,000 crore (US$ 1 trillion) in 2013, growing at a 7.2% Compound Annual Growth Rate (CAGR), outpacing the US, China, and Germany, according to a Deloitte India and Retailers Association of India report.
• India's seven major cities are set to receive 16.6 million square feet (sq. ft.) of prime retail space in new shopping malls by the end of 2026, as per Anarock's data.
• In January 2025, Hindustan Unilever acquires 90.5% stake in beauty brand Minimalist at Rs. 2,955 crore (US$ 341.1 million) valuation.
• In December 2024, the Competition Commission of India (CCI) has approved the acquisition of a 72.8% stake in Prataap Snacks Ltd by Authum Investment & Infrastructure Ltd and Mahi Madhusudan Kela. This acquisition marks a significant shift in ownership for the snack brand Diamond.
• French sports retailer Decathlon is accelerating its investments to ramp up production and enhance its retail presence further in India.
• The Indian retail sector in 2024 saw the opening of over 750 new stores and a total of Rs. 12,000 crore (US$ 1.38 billion) rose, as per the data compiled by IndiaRetailing Insights.
• Reliance Industries is likely to sell another 8-10% stake in Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt and prepare for the initial public offering of the conglomerate's retail business.
• Reliance Consumer Products, the FMCG arm of Reliance Retail announced the launch of it made-for-India consumer packaged goods brand 'Independence' in Gujarat.
• Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfilment are taking off in India.
• With the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months.