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 reached over 4 million square feet in Q4 2025, driving total retail leasing to a record ~8.9 million square feet in 2025 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 continued to witness strong expansion in 2026, with retailers opening new stores across multiple formats and categories, supported by rising investments, expanding mall supply and growing consumer demand across major cities.
• 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 May 2026, Emami Ltd. announced the acquisition of a 60% stake in digital-first beauty and personal care company IncNut Digital for Rs. 321 crore (US$ 36.35 million), strengthening its presence in the fast-growing D2C retail segment.
• In March 2026, Reliance Retail acquired beauty and wellness brand Pahadi Local, expanding its portfolio of consumer brands and reinforcing its focus on India's premium personal care market.
• In March 2026, Kotak Mahindra Bank emerged as the successful bidder for Deutsche Bank’s India retail banking business in a deal valued at approximately Rs. 4,500 crore (US$ 509.22 million), expanding its retail customer base and consumer finance footprint.
• In January 2026, IKEA announced plans to invest over Rs. 20,000 crore (US$ 2.2 billion) in India over the next five years to expand its retail network, strengthen logistics infrastructure and increase local sourcing as part of its long-term growth strategy in the Indian retail market.
• India’s luxury retail market continued to witness strong growth in Q4 2025, with overall retail leasing reaching a record ~8.9 million sq. ft., driven by rising demand from premium and luxury brands across major cities. The growth was supported by experience-led flagship stores, premium retail formats and increasing affluent consumer spending.
• 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 Bain & Company’s 2026 e-retail report, India’s online retail market is witnessing a gradual shift from cash-on-delivery (COD) to digital payment modes such as UPI-based payments at delivery, reflecting rising adoption of digital transactions across online shopping platforms.
• In January 2026, Xiaomi said 100% of its phones and TVs sold in India are manufactured locally, while wearables and tablets are also made in India; local sourcing has risen to about 35% of its components.
• In November 2025, Lush re-entered India through a licensing partnership with Bilberry Brands, starting online and planning physical stores in key cities such as New Delhi, Mumbai and Bengaluru.
• In December 2025, Prada announced a limited-edition “Made in India” Kolhapuri-inspired sandal collection, set to launch in February 2026 across 40 global stores and online, in collaboration with Indian artisan bodies.
• In December 2025, lululemon announced plans to expand into six new international markets in 2026, including India through a partnership with Tata CLiQ, with the brand set to launch through Tata CLiQ Luxury and Tata CLiQ Fashion platforms alongside its first physical store in the country.
• In FY26, Zudio continued its rapid expansion across India, increasing its store network from 765 outlets in FY25 to 963 stores across 313 cities. The brand added 212 new stores and expanded into 76 additional cities during the year.
• In 2025, over 30 global brands entered India, underscoring the country’s growing appeal for international retailers and premium consumer brands.
• In February 2026, Nykaa opened 11 new stores and entered four new cities in Q3 FY26, taking its total store count to 276.
• In January 2026, Tim Hortons India opened two new outlets at Navi Mumbai International Airport, strengthening its presence across high-footfall transit locations.
• In January 2026, IKEA said it will invest over Rs. 20,000 crores (US$ 2.2 billion) in India over the next five years to expand its retail network, logistics and local sourcing.
• In November 2025, LuLu Group revived its Visakhapatnam mall project after signing a fresh MoU with the Andhra Pradesh government, with the project expected to create new direct and indirect jobs.
• As of February 2026, Reliance Retail operated approximately 19,340 stores across India and served more than 349 million registered customers.
• In February 2026, India’s CPI inflation stood at 3.21% (provisional), with rural inflation at 3.37% and urban inflation at 3.02%, while food inflation was 3.47%.
• India’s retail trading sector attracted Rs. 36,740.24 crore (US$ 5,028.12 million) FDIs between April 2000-March 2026.
• India’s consumer and retail sector recorded 146 deals worth US$ 1.5 billion in Q1 2026, with deal volume rising 21% sequentially and deal value declining 55%, reflecting a shift toward smaller, strategic transactions. The quarter was led by domestic consolidation and outbound activity, while personal care and textiles, apparel & accessories together accounted for 39% of total deals by volume.
• 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 final consumption expenditure (PFCE) is estimated at Rs. 2,19,63,865 crore (US$ 2485.30 billion) in FY26 (First Advance Estimates), growing 8.2% over the previous year and accounting for 61.5% of GDP. As per Economic Survey 2025-26 PFCE will grew 7.0% in FY26, supported by low inflation, stable employment and rising real purchasing power.
• 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 February 2026, Hindustan Unilever approved the acquisition of the remaining 49% stake in Zywie Ventures (OZiva) for Rs. 824 crore (US$ 93.24 million) and the divestment of its 19.8% stake in Nutritionalab for Rs. 307 crore (US$ 34.74 million), strengthening its health and wellbeing portfolio.
• In February 2026, Reliance Consumer Products acquired 100% equity stake in Southern Health Foods Private Limited, maker of the Manna brand, for Rs. 156.42 crore (US$ 17.70 million), adding to its health foods and staples portfolio.
• French sports retailer Decathlon is accelerating its investments to ramp up production and enhance its retail presence further in India.
• In February 2026, Trent said it had added over 100 stores in the nine months to December 2025, taking its total store count to more than 1,100 and accelerating expansion in smaller towns and suburban markets.
• 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.