India’s Retail Industry

India’s Retail Industry is one of the fastest-growing industries globally. India is ranked as Asia’s third-largest market for retail and fourth-largest in the world. It is poised to become the third-largest market in the consumer segment by 2025.

The retail industry in India provides 8% of employment and contributes to 10% of the overall GDP of India. The market size in 2018 stood at US $950 billion and was growing at 13% CAGR. The retail sector is touted to reach around US $1.3 trillion by 2025.

India is also one of the fastest-growing markets in E-commerce. The E-commerce market is believed to reach the US $200 billion by 2027 at 30% CAGR. Due to smartphone penetration, internet penetration, and affordable data plans, online sales are increasing at high speeds.

Reasons for growth:

  • Population size
  • Increasing disposable size
  • Increase in middle-class families
  • Increase in rural spending
  • Urbanization
  • Increase in online purchases
  • Internet penetration
  • Changes in consumer preferences

Government Initiatives:

  • FDI- allowed
  • 51% in multi-retail brand
  • 100% in single retail brand under automatic route
  • 100% in B2B E-commerce under automatic route
  • 100% in duty-free shops under automatic route
  • GST for the single unified tax system


Retail industry not only involves the FMCG sector but also sectors like warehousing, distribution, sellers, transport, fashion, advanced technologies and relevant services, and others. From the above points, we can say that the Indian Retail industry has vast potential and is attracting many investments and global retail giants in entering the Indian market.

At Route2Market, we understand our client’s needs and requirements and provide custom clearance services, logistics management services, storage, warehousing, and distribution support. We help companies register their products in the food safety and standards authority of India (FSSAI), food packaging, and labelling guidelines. We also help set up an office in India or a manufacturing unit at convenient locations at affordable costs. We provide a one-stop solution to all your requirements to enter the Indian market. We are optimizing the business resources with our expert knowledge.