Statistics, news & updates: everything you need to know about the Retail Industry in India


  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats
Retail Industry India Overview 2020


  • Apparel
  • Fashion Accessories
  • Food & Beverage
  • Footwear
  • Furniture & Furnishing
  • Kitchenware & Tableware
  • School & Office Supplies


The Retail market in India has undergone a major transformation. In fact, it has witnessed tremendous growth in the last 10 years. India is largely an unorganized retail market, contributing 88% to the total retail sector in India.
The organized retail market is currently valued at $ 60 billion, while the unorganized market holds the rest. Organized retailing in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing. Most Indian shopping happens in open markets or numerous small grocery and retail shops.

The Indian Government has permitted 100% FDI in the single-brand retail and 51% in multi-brand retail. This move will further accelerate the Retail Industry. Due to the entry of several new players, the Indian retail industry has emerged as a dynamic and fast-paced industry.

COVID Impact

Brick-and-mortar retailer chains and small stores said the latest Covid restrictions have severely impacted the retail industry leading to liquidity challenges and job losses. India’s $850 billion retail sector has been reacting to the global pandemic over the last year with hand sanitizer, face masks and a step up in the cleaning at malls and other organized retail outlets. Annual retail inflation (INCPIY=ECI) rose 6.30% year-on-year, up from 4.29% in April. Analysts had forecast retail inflation at 5.30%

Weaving in and out of lockdowns and restrictions has enabled most retailers to invest in digitisation and e-commerce to remain competitive and in some cases, stay in business. The online retail sector was already growing at considerable rate pre-covid.The lockdown and closure of physical stores has allowed retailers to digitise, pivot and focus on different verticals, meaning that the online space is now more competitive than ever.

Map – Industry Clusters

Retail Industry Map India

Growth Drivers

  • Retail is India’s largest industry, currently accounting for over 10% of the country’s GDP. It accounts for 8% of total employment.
  • Revenue generated from online retail is projected to grow to US$ 60 billion by 2020.
  • The Overall Retail market is set to cross the $ 1.7 trillion mark by 2020 from $ 795 billion in 2017.
  • Factors that make India so attractive include the second largest population in the world, increasing urbanization, rising household incomes, connected rural consumers and increasing consumer spending.
  • Recent policy changes allow 100% FDI under the automatic route for single-brand retail trading.

Key Players in India


  • Walmart, Metro AG, Amazon, Target Corporation, Best buy Co, Ikea Retail


  • Lifestyle, Pantaloons, Shopper’s Stop, Bata India, V Mart, Cantabil, Reliance fresh, Future retail, Trent, Spencers, Big Bazaar

Market Stats

  • Indian retail market is projected to reach $ 1.75 trillion by 2026.
  • The retail industry reached US$ 950 billion in 2018 at CAGR of 13 per cent.
  • India ranked number 2 in the Global Retail Development Index (GRDI) in 2019.
  • India is the world’s fifth-largest global destination in the retail space.
  • India’s retail sector investments doubled to reach $ 180.18 million in 2018.
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