The retail market in India has experienced significant growth in recent years, becoming the fourth largest in the world. Projections indicate that the market will continue to expand, with estimates suggesting it could reach $2 trillion by 2032. India’s young population and rising disposable income have made the country an attractive destination for global consumer brands, with many international retailers entering the market to capitalize on this growth.
Reliance Brands Ltd., a major player in the Indian retail sector, is set to introduce six global brands to the country by 2025. These brands include Old Navy, Armani Cafe, Asos, Shein, EL&N Café, and Sandro and Maje. The opening of Jio World Plaza, India’s largest luxury mall, has further bolstered efforts to bring more international brands to the country. The entry of these global brands is indicative of India’s increasing appeal to foreign investors in the retail sector.
The retail sector in India is a significant contributor to the country’s GDP and employment, accounting for more than 10 percent of the GDP and employing approximately eight percent of the population. Online retail penetration is projected to grow at a rapid rate, outpacing offline retail by 2.5 times in the next decade. Deloitte India’s report predicts that the online retail sector could surge from $70 billion in 2022 to $325 billion by 2030, driven by the rapid growth of e-commerce in tier-2 and tier-3 cities.
India’s attractiveness to global retail investors is further evidenced by the influx of international brands entering the market in recent years. McKinsey FashionScope anticipates that hundreds of global brands will enter India in the coming years, with around 25 international retail brands expected to launch in 2024. The country’s economic growth and openness to global trends have played a pivotal role in drawing foreign brands to India’s retail market.
According to reports, at least 160 international retailers are currently in talks to enter the Indian market, seeking partners to establish outlets in the country. Franchise India Holdings Ltd. estimates that these global brands could open 5,000 stores across India through the franchise route over the next five years, cumulatively investing about $250 million. This influx of foreign brands signifies the growing interest and confidence that international retailers have in India’s retail sector, underscoring the country’s emergence as a key player in the global retail landscape.
