India ranked first in the Global Retail Development Index in year 2018. The total consumption expenditure on the retail side is expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It 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 the retail space.
India's retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020. Factors like rising incomes and lifestyle changes by middle class and increased digital connectivity are the major boosters for the industry. Online retail sales grew at the rate of 31 per cent year-on-year to reach US$ 32.70 billion in 2018.
India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users.
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows of around US$ 1.59 billion during April 2000–December 2018, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
It is projected that by 2021 traditional retail in India will hold a major share of 75 per cent, organized retail share will reach 18 per cent and e-commerce retail share will reach 7 per cent of the total retail market.