Retail & E-commerce

Indian retail market is projected to reach $2 tn by 2032

Last updated: September 8, 2025

Riding on growing smartphone penetration, the Indian e-commerce market is expected to expand to US$1750 bn by 2026

$8-$12 Bn

Added in the e-retail market since 2020, scaling up to $57-$60 Bn in 2023

$200-300 Bn

India’s target to increase e-commerce exports by 2030

25%

Share of the online sales across major non-grocery retail categories by the year 2026

US$350 Bn

Expected to touch in GMV by 2030

14 new international entrants (2023)

Expanded presence across major Indian cities.

1.5–2.5 Mn MSMEs online

Reflects growing digitization and digital payment adoption.

$300 Bn e-commerce exports (by 2030)

Projected growth aligned with India’s global trade ambition.

45% GMV from digital shopping (by 2030)

Rising incomes and lifestyle changes driving online retail.

Global Retail Innovation Index 2023

India recognized as a leader in retail innovation worldwide.

Direct Selling Guidelines

Issued by Department of Consumer Affairs, for strengthening the existing regulatory mechanism for “Direct Selling‟ and Multi-Level Marketing (MLM), and for preventing fraud and protecting the legitimate rights and interests of consumers
FDI Guidelines in eCommerce 2018

100% FDI under automatic route is permitted in marketplace model of e- commerce.
FDI Guidelines in eCommerce 2016

100% FDI under automatic route is permitted in marketplace model of e- commerce.
FDI in Single Brand Retail

With a view to provide greater flexibility and ease of operations to SBRT entities, it has been decided that all procurements made from India by the SBRT entity for that single brand shall be counted towards local sourcing, irrespective of whether the goods procured are sold in India or exported.
Single Brand Retail Trading

The policy allows 100% FDI under automatic route for Single Brand Retail Trading.
The Consumer Protection Act 2019

An Act to provide for protection of the interests of consumers and for the said purpose, to establish authorities for timely and effective administration and settlement of consumers' disputes and for matters connected therewith or incidental thereto.
The Consumer Protection (e-Commerce) Rules, 2019

“Consumer” shall have the same meaning as provided under the Consumer Protection Act, 2019.

New FDI e-Commerce Policy on e-Commerce Industry

For the growth of the e-Commerce sector, a conducive regulatory environment has been provided under the extant laws and regulations which grant legal recognition to entities in the sector.

National e-Commerce Policy

Within a short period in the recent past, the significance of economic activities in the digital space has grown substantially, both globally and in India.

Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2019

In respect of proposals involving foreign investment beyond 51%, sourcing of 30%. of the value of goods procured, shall be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.

The Essential Commodities (Amendment) Act

The Amendment proposes the regulation of essential food products during extraordinary circumstances.

Retailers Association of India

+91 22 28269527 - 29

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RAI works with all stakeholders for creating the right environment for the growth of modern retail industry in India.

Confederation of All India Traders

+91 11 45032664

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To render best possible assistance to trading community at a national level.

Retailers Association's Skill Council of India

+91-22-40058210-5

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RASCI is a collaborative and comprehensive source of retail expertise and independent advice for industry, training organizations, educational institutions, certifying bodies, employees, students or jobseekers about skills development in the retail industry.

e-Commerce Association of India

+91 011 41582722

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The association seeks to develop India as an e-commerce hub by collaborating with various e-commerce organizations across the country.

All India Association of Industries

022 2201 9265

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A leading association of industries serving trade and industry spaces.

Ministry of Commerce and Industry

Investment Opportunities

  • Investment in digital payments, hyper-local logistics, analytics driven customer engagement.
  • Investment in linking indigenous manufacturing with foreign investment for lucrative opportunities.
  • Investment in high-margin and high-quality design and manufacturing clusters, primarily for export.
  • Investment in skill development to cater to a variety of operations, from manufacturing to retail to logistics.
Useful Links:

Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

US-based Walmart has acquired Flipkart, an Indian ecommerce firm, for US$16b

Amazon.com has invested around US$4b in its Indian retail operations.

France's Total to set up India-wide retail network of 1,500 gas stations.

Berkshire Hathaway has invested US$350m in Paytm-promoter One97.

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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