Retail Industry in India

India’s e-commerce sector is expected to reach US$ 53.08 billion in 2024, with an annual growth rate of 11.45% to reach US$ 91.24 billion by 2029.

Advantage India

Robust
Demand

* Reliance Industries, India’s largest retailer, stated that the country is set to emerge as the world’s third-largest retail market by 2030, supported by government initiatives aimed at enhancing disposable incomes and driving consumption.

* 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.

* As of FY25, India’s has the third highest number of e-retail shoppers globally.

Innovation
In Financing

* Collective efforts of financial houses and banks with retailers are enabling consumers to go for durable products with easy credit.

* 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.

Increasing
Investments

* Due to India’s wealth of resources, availability of labor at relatively low costs, and special investment wages such tax breaks, etc., foreign corporations prefer to invest here.

* India’s retail trading sector attracted Rs. 36,241.37 crore (US$ 4.97 billion) FDIs between April 2000-December 2025.

* 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.

Policy
Support

* To improve the business climate and make it simpler for foreign companies to register fully owned subsidiaries in India, the Indian government has implemented a number of rules, regulations, and policies.

Last updated: Feb, 2026

IBEF Campaigns

MORE
Discover India

Discover India

A campaign designed to showcase the country’s rich heritage, vibrant ...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

Tourism in India Growing with Better Infrastructure and Richer Experiences

Tourism in India Growing with Better Infrastructure and Richer Experiences

India has positioned itself prominently within the global tourism landscape. The country currently accounts for 1.40% of total international tourist a...

Small Commercial Vehicles in India: Enabling Last-Mile Mobility and Urban Logistics

Small Commercial Vehicles in India: Enabling Last-Mile Mobility and Urban Logistics

Small Commercial Vehicles (SCVs) have emerged as a critical enabler of India’s evolving mobility, logistics, and urban distribution ecosystem. P...

How India’s Pharmaceutical Industry Supports Healthcare Affordability

How India’s Pharmaceutical Industry Supports Healthcare Affordability

India’s pharmaceutical industry is often called the “pharmacy of the world.” It supplies affordable, high-quality medicines both hom...

IBEF BLOG

MORE
Growth of Decorative Construction Materials in India’s Real Estate Sector
8 Jun 2026

Growth of Decorative Construction Materials in India’s Real Estate Sector

The growth of India's decorative construction materials market which in...

India’s Drone Ecosystem: From Policy Push to Commercial Adoption
5 Jun 2026

India’s Drone Ecosystem: From Policy Push to Commercial Adoption

The drone industry in India has entered a significant phase of expansion. T...

How Data Centres Are Becoming the Backbone of India’s Digital Economy
4 Jun 2026

How Data Centres Are Becoming the Backbone of India’s Digital Economy

India’s digital transformation over the past decade has been driven b...

Partners
Loading...