Indian retail market is projected to reach 2 trillion Dollar by 2026

Indian retail market is projected to reach 2 trillion Dollar by 2026

Indian retail market is projected to reach $1.75 tn by 2026

India - The Top Retail Destination is going to be trillion dollar that will boost indian economy

The Retail market in India has undergone a major transformation and has witnessed tremendous growth in the last 10 years. The Overall Retail market is set to cross the $1.75 tn mark by 2026 from $795 bn in 2017. India’s e-commerce retail market which stood at $30 bn in 2019 is also set to grow at a CAGR of 30% for gross merchandise value to be worth $200 bn by 2026. Direct-to-Consumer segment could have a US $100 billion addressable market by 2025.

For further details, please refer FDI Policy

  • 10% - Contribution to India's GDP
  • 8% - Share in India's employment
  • 4X - Rise in consumption
  • 3X - Growth in organized retail

Industry Scenario For Retail/Ecommerce

The Retail industry in India has experienced a healthy growth over last few years achieving a total market size of $795 bn in 2017.


India’s retail market is estimated to reach $1.75 tn by 2026, from $0.79 tn in 2018, growing at a CAGR of 9-11%, driven by socio-demographic and economic factors such as urbanisation, income growth and rise in nuclear families. On the other hand, the Indian e-commerce industry is expected to cross $200 bn mark by 2026.


The E-commerce market in India is also set to grow at a CAGR of 30% for gross merchandise value to reach $200 bn by 2026, and have a market penetration of 12% compared to 2% currently.


India is largely an unorganized retail market, contributing 88% to the total retail sector in India. The organized retail market is currently valued at $60 bn, while the unorganized market holds the rest. The share of the organized retail market is projected to increase to 22-25% by 2021, thereby reducing the unorganized retail market’s share to 77%. The organized retail market, therefore, has the potential to reach approximately $140-160 bn.

Recent Announcements for Ecommerce Sector


Jan 11, 2021

Hennes and Mauritz AB (H&M) is opening its 50th outlet in Bhubaneswar, India, a landmark reached in less than five years after it entered the country through its wholly-owned retail subsidiary.


Jan 08, 2021

Flipkart has signed a memorandum of understanding (MoU) with the Logistics Skill Sector Council (LSC) for setting up a Centre of Excellence (CoE) in Karnataka.


Jan 08, 2021

Raksha Mantri Shri Rajnath Singh Launches Online Portal for Items to be Purchased Against Firm Demand from CSD.  Read more


Jan 04, 2021

Ministry’s khadi arm- Khadi & Village Industries Commission (KVIC) launches E-commerce Portal: ekhadiindia.com


Dec 28, 2020

Melorra, a jewellery brand for everyday wear, has made an allocation of $50 million to its offline foray, with plans to set up 350 stores in metros and smaller towns over the next six years. 


Dec 24, 2020

Mahindra Logistics (MLL) recently signed a memorandum of understanding (MoU) with Bengaluru-based social enterprise 1Bridge to work together on last-mile delivery & distribution of products in rural India.


Dec 24, 2020

Melorra, a jewellery brand, has made an allocation of $50 mn to its offline foray, with plans to set up 350 stores in metros and smaller towns over the next six years. 


Dec 22, 2020

Max Ventures & Industries (MaxVIL),a subsidiary of Max Speciality Films (MSFL) which manufactures specialty packaging films, is investing INR 600 million to install two metallizer lines to meet increased demand for specialty packaging from packaged food segment with improved shelf life offering 100% reliable laminate options. 


Dec 21, 2020

Technology (tech) giant Amazon said it has enabled digitisation of more than 1 million small and medium businesses (SMBs) in India. This year alone, more than 150,000 new sellers have joined its marketplace platform. This makes it one of the biggest examples of tech adoption of small businesses in the country. 


Dec 18, 2020

Ikea To Open Navi Mumbai Store; Plans INR 6k Cr Investment In Maharashtra In 10 Yrs 


Dec 11, 2020

Ministry of Commerce and Industry has released the Refrigerating Appliances (Quality Control) Order, 2020 specifying the standards the refrigerators manufacturers will have to conform.


Dec 09, 2020

IKEA India is planning to invest INR 6,000 crore as a part of its expansion plans in Maharashtra. The Swedish furniture giant is expecting five million visitors at this store in 2021.


Dec 04, 2020

Royale Touche, a manufacturer in the premium laminate and vitrified tiles space, will add 50 more new stores in the Indian market by the end of 2021.


Dec 02, 2020

Quick service restaurant chain The Wendy's Company has partnered with Rebel Foods to set up 250 cloud kitchens across India.


Dec 02, 2020

Swedish company IKEA will open 25 outlets in the country with an investment of INR 10,500 crore. The Swedish MNC will invest INR 5,000 crore in UP. The company's focus is on four cities of Purvanchal and five of central UP


Nov 26, 2020

IKEA set to resume work on Noida store, the company had signed an MoU with the Uttar Pradesh government in December 2018 for INR 5,000-crore investment in Noida and other cities in the state. It has committed to completing the project by 2025


Nov 26, 2020

Pureplay Skin Sciences (India) Pvt. Ltd, which sells direct-to-consumer skin and hair care brands Plum and Phy, has raised ₹110 crore in Series B funding.


Nov 26, 2020

The Competition Commission of India (CCI) has approved the acquisition by Reliance Retail Ventures (RRVL), Reliance Retail and Fashion Lifestyle (RRVL WOS) of the retail and wholesale undertaking, and the logistics and warehousing undertaking of the Future Group.


Nov 24, 2020

The American media giant Disney unveiled shopDisney (shopDisney.in), its e-commerce marketplace, offering a variety of Disney, Pixar, Marvel, and Star Wars products from authorized international and domestic licensees.


Nov 17, 2020

The Flipkart group has acquired Scapic, an augmented reality (AR) company, for accelerating the company’s efforts to provide deeper camera experiences, virtual storefronts and new opportunities for brand advertising on its platform.


Nov 13, 2020

Zomato has raised $195 mn in funding from six investors including Luxor, Kora and Steadview, valuing the online food ordering platform at $3.6 bn.


Nov 12, 2020

FreshToHome, a Bengaluru-based online fresh fish and meat retailer, has raised $121 mn in Series C funding led by Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai.


Nov 10, 2020

Walmart-owned Flipkart announced the launch of its first grocery fulfilment centre in Lucknow that will create over 500 direct jobs. The facility will support grocery products delivery to Lucknow, Kanpur and Allahabad.


Nov 10, 2020

Industrial goods supplier Moglix is expanding its operations to Goa and Assam.


Nov 06, 2020

The Flipkart Group announced a strategic investment in USPL, a premium youth-focused fashion brand house, as Flipkart to deepen product offerings on its platforms.


Nov 05, 2020

Amazon India inks MoU with Silk Mark Organisation of India to launch an exclusive Silk Mark Store with Silk Mark labelled products through multiple sellers associated with the organisation.


Nov 05, 2020

Saudi Arabia's sovereign Public Investment Fund (PIF) to invest INR 9,555 cr in Reliance Retail Ventures Ltd for 2.04% stake


Oct 28, 2020

Japanese apparel brand, Uniqlo has launched e-commerce operations in India.


Oct 27, 2020

During festive season, smartphone and consumer electronic brands and retailers registered 10-20% sales increase over last year, and e-commerce platforms registered 50% surge in sales.


Oct 27, 2020

Retail chain Tablez aims INR 500-cr turnover, network of 250 outlets in next 5 years


Oct 26, 2020

Jumbotail, a business-to-business e-commerce marketplace for food and grocery products, has raised $11 million as part of its Series B2 funding round led by Heron Rock, along with participation from Jumbofund, Nexus Venture Partners, Siddhi Capital, Reaction Fund and Pimpernel Holdings.


Oct 26, 2020

Tribal Cooperative Marketing Development Federation of India (TRIFED) has included 100 new Forest Fresh Organic Products sourced from tribes across India in its range of Tribes India products on its E-marketplace (tribesindia.com) and e-tailers.


Oct 23, 2020

Walmart-owned Flipkart Group will be investing INR 1,500 crores for a 7.8% stake in Aditya Birla Fashion and Retail Limited, to strengthen the range of brands offered on its e-commerce platforms - Flipkart and Myntra.


Oct 15, 2020

Alyssum Asia Holdings II Pte Ltd (a unit of KKR) has invested INR 5,550 crores in Reliance Retail Ventures, assigning 1.28% stake to KKR.


Oct 14, 2020

ArcelorMittal/Nippon Steel India (AM/NS) is planning to relaunch Hypermart, its retail outlets that largely serve the MSME segment. The company is also planning to expand its network from 18 outlets to 50 by the end of 2021. 


Oct 13, 2020

Britannia Industries signed a Memorandum of Understanding (MOU) with the Tamil Nadu Government stating the increase of investment in the state from INR 300 crore to INR 550 crore over a period of seven years.


Oct 12, 2020

Food and beverages major PepsiCo is increasing investment at its new greenfield snacks plant in Uttar Pradesh to INR 814 crore. Pepsi aims to double its business from snacks business in India and also increasing the capacity of existing food plants in West Bengal and Maharashtra, and it has additionally proposed to set up a greenfield manufacturing facility in Assam.


Oct 09, 2020

Delivery app Instacart raises $200 mn valuing the company at $17.7 bn.


Oct 08, 2020

Amazon infuses INR 700 crore into its India digital payments business


Oct 08, 2020

Flipkart acquires 140 acre land parcel to develop logistics park


Oct 06, 2020

MoHUA Joins Hands with Swiggy to Take Street Food Vendors Online Under PM SVANIDHI Scheme


Oct 04, 2020

Mubadala To Invest INR 6,247.5 Cr In Reliance Retail Ventures


Oct 03, 2020

Global Investment Firm TPG to Invest INR 1,837.5 Cr In Reliance Retail Ventures


Sep 30, 2020

General Atlantic to invest INR 3,675 cr in Reliance Retail Ventures


Sep 29, 2020

Mango, the Spanish design and clothing brand will open expand its presence in India, and open 10 more retail stores across India. 


Sep 28, 2020

IKEA to adopt omni-channel approach for expansion in India. It's planning to open stores in Mumbai, Bengaluru and Delhi/NCR, is looking to have a omni-channel approach, by integrating its brick and mortar format stores with online stores.


Sep 23, 2020

Global investment firm KKR will make an investment of INR 5,550 crore into Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries. 


Sep 18, 2020

IKEA Retail to open global office at Bengaluru


Sep 09, 2020

The Foreign Investment Promotion Board (FIPB) has cleared IKEA's INR 10,500-crore investment proposal to open 25 stores in the country by 2025.


Sep 08, 2020

Amazon India will launch new sort facilities in Visakhapatnam, Farukhnagar, Bengaluru, Mumbai and Ahmedabad. Amazon will also expand the existing sort facilities. This will enable faster delivery and increased connectivity with customers.


Aug 24, 2020

Logistics firm Delhivery is planning to invest up to INR 300 crore in 18-24 months on expansion, including increasing fleet size and setting up of trucking hubs, in order to meet increased demand for more organised players in the sector in the wake of COVID-19 pandemic.


Aug 11, 2020

ABB India announced the launch of eMart. The B2B & B2C platform will be the first-of-its-kind in the industry, owing to its dynamic, price transparent model.  It aims to provide an equally fair and favorable experience to both ABB distributors and customers, further boosting the agenda of the country’s Digital India programme. 


Jul 27, 2020

All provisions of the Consumer Protection Act, 2019 have come into force from 24th July, 2020 including the Consumer Protection (e-Commerce) Rules, 2020.


Jul 27, 2020

Union Minister for Consumer Affairs, Food & Public Distribution Shri Ram Vilas Paswan launched the Bureau of Indian Standard’s Mobile App ‘BIS-Care’ and three portals – the Standardization, Conformity Assessment and Training Portals of e-BIS on www.manakonline.in for consumers.


Jul 26, 2020

Direct selling FMCG firm Amway India is looking to invest an additional INR 100 crore over the next two years to fuel its future growth plans in India. The company is working on boosting its supply chain and home delivery network to meet customer requirements.


Jul 20, 2020

The Indian direct selling industry has recorded sales of $2.47 bn in 2019, reporting a growth of 12.1%, according to a report by the World Federation of Direct Selling Associations (WFDSA). India ranked 15th globally. In terms of the number of direct sellers, India has been ranked at 6th position, proving employment to 57.50 lakh people.


Jun 06, 2020

Reserve Bank of India announces creation of a Payments Infrastructure Development Fund (PIDF) to encourage acquirers to deploy Points of Sale (PoS) infrastructure (both physical and digital modes) in tier-3 to tier-6 centres and northeastern states.


Feb 03, 2020

American luxury jewellery brand Tiffany & Co opened its first store in New Delhi spread across 2,600 sq ft


Jan 15, 2020

Alibaba's Antfin Singapore invested in $50 mn into the online delivery platform Zomato.


Jan 15, 2020

The e-commerce giant Amazon plans to invest $1 bn in India over the next five years in a bid to digitally enable micro, small, and medium enterprises (MSMEs) and traders across India.


Dec 04, 2019

India has ranked 73rd out of 152 countries in a business-to-consumer E-commerce index that measures an economy's preparedness to support online shopping, moving seven places up in the list.


Nov 29, 2019

IKEA sees Mumbai among top 30 global markets, makes biggest investment so far.


Nov 15, 2019

New York based global fashion brand Kenneth Cole has opened its first flagship store in India in Mumbai.


Aug 26, 2019

Bangalore-based e-commerce startup FreshToHome raised $ 20 mn in a funding round led by Iron Pillar and Japan's ZIGExn founder Joe Hirao also participating. FreshToHome which delivers fresh produce and meat also recently expanded its operations to UAE.


May 06, 2019

Private equity fund Gaja Capital has invested INR 50 cr in lifestyle brand Chumbak Design in a funding round. The total raised amount INR 70 cr will be used for expanding its presence and increasing the product categories.


Apr 29, 2019

Alibaba backed online grocery platform BigBasket is investing $ 100 mn to strengthen its supply chain by setting up vending machines and distribution centres.


Apr 24, 2019

New York based investor Tiger Global has invested $ 89 mn in Bengaluru based agri - tech startup NinjaCart in a funding round, picking up about 26.5% stake and valuing the startup at over $ 320 mn.


Apr 23, 2019

e - Commerce giant Flipkart opened its second data centre in Hyderabad in partnership with CtrlS, to strengthen its growing marketplace e - commerce business.


Oct 31, 2018

US-based Walmart Inc plans to invest about INR 3,200 crore to roll out 47 wholesale stores in India by the end of 2022


Feb 22, 2018

Swedish furniture retailer IKEA will invest $ 437.2 mn in the state over the long-term to set up multi-format stores as well as experience centers


Feb 15, 2018

British tech firm Dyson will invest $ 200 mn into its Indian operations over the next five years and will set up 20 stores across Delhi-NCR, Mumbai, and Bengaluru.


Nov 15, 2017

Amazon’s third capital infusion of $ 435 mn into its India business this year takes its total investment in Amazon Seller Services to $ 2.6 bn

List the major benefits of E-commerce?

The major benefits of E-commerce are:


1) Overcomes geographical limitations


2) Eliminate travel time and cost


3) Remain open all the time


4) Enable Deals, Bargains, Coupons, and Group Buying

What are the Aid drivers for growth of e-commerce?

The new generation of tech savvy consumers will have more aspiration (and income) to consume different products and use variety of services. Supported by offline partnerships (e.g. restaurants partnership with Zomato) and demand-aggregators, asset-light e-commerce models can provide an enhanced reach and broader market to the brands & businesses. For example, the model on which the app-based food delivery works.

Is it possible to set up an online shop for an already existing SBRT?

Subject to the conditions mentioned in this Para, a single brand retail trading entity operating through brick and mortar stores, is permitted to undertake retail trading through e-commerce.

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