Indian retail industry has emerged as one of the most growth-based industries recently thanks to globalization. The Indian Retail Industry accounts for over 10% of the country’s gross domestic product (GDP) and around eight% of the employment. India is the world’s fifth-largest global destination in the retail space.
In 2020, India's retail sector was estimated at US$ 883 billion, with grocery retail accounting for US$ 608 billion. The market is projected to reach about US$ 1.3 trillion by 2024.
Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.
The Indian retail industry achieved 93% of pre-COVID sales in February 2021.
After an unprecedented decline of 19% in the January-March 2020 quarter, the industry displayed signs of recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. With the easing of covid lockdown restrictions, the industry is poised for a major performance.
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflow totalling US$ 3.44 billion during April 2000-December 2020, according to Department for Promotion of Industry and Internal Trade (DPIIT). Cumulative FDI inflow in retail sector between stood at US$ 2.17 billion April 2000 and June 2020. India’s retail sector attracted US$ 6.2 billion from various private equity and venture capital funds in 2020.Future Prospects
By 2024, India's e-commerce industry is expected to increase by 84% to US$ 111 billion, driven by mobile shopping, which is projected to grow at 21% annually over the next four years. Online penetration of retail is expected to reach 10.7% by 2024 versus 4.7% in 2019.