Indian retail industry accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth largest global destination in retail space.
The previous government opened up multi-brand retail, allowing 51% Foreign Direct Investment (FDI) in the sector. The current government – which was in opposition at the time and opposed the move – has made it clear it will not be increasing the FDI limit any time soon though 100% FDI has been allowed in single brand retailing.
India’s retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015 owing to income growth, urbanisation and attitudinal shifts.
India’s e-commerce market is estimated to expand to over US$ 100 billion by 2020 from US$ 3.5 billion in 2014.
Indian FMCG market is expected to increase to USD103.7 billion by 2020 from USD 47.3 billion in 2015.
Implementation of GST is expected to enable easier movement of goods across the country, thereby improving retail operations for pan-India retailers.