Make In India

Retail & E-commerce Sector Overview

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India’s Retail & E-commerce sector, valued at ₹80 trillion in 2023-24, is one of the fastest-growing markets globally. The sector is undergoing a massive transformation, driven by rising digital adoption, changing consumer behavior, and increasing disposable incomes. Retail in India is expected to grow at a CAGR of 11%, and e-commerce is projected to reach $200 billion by 2027.

Why Invest in the Retail & E-commerce Sector

  • Digital Growth: E-commerce is rapidly expanding, fueled by internet penetration and mobile usage. India’s internet user base is expected to reach 1.1 billion by 2025.
  • Rising Income Levels:: The growing middle class and urbanization are driving the demand for both online and offline retail.
  • Government Support: Initiatives like the National Retail Policy aim to enhance the ease of doing business and promote the growth of organized retail.

Incentives & Schemes

  • PLI Scheme for Retail: ₹1,700 crore allocation to boost the manufacturing of retail goods and support digital platforms.
  • FDI Policy: The government allows 100% FDI in e-commerce through the marketplace model, fostering global investment.
  • National Retail Policy: Aims to support the growth of organized retail and enhance the sector’s contribution to GDP.

Highlights

  • E-commerce Growth: The e-commerce market is expected to reach $200 billion by 2027, driven by online shopping, digital payments, and improved logistics.
  • Organized Retail: Organized retail is expected to grow to 25% of the total retail market by 2030.
  • Investment: Over $12 billion FDI has been attracted by India’s retail sector in the last five years.

Retail & E-commerce Sector Data

Category Details
Market Size (2023-24) ₹80 trillion
E-commerce Market Size $85 billion (expected to reach $200 billion by 2027)
Organized Retail Market 25% of total retail market by 2030
FDI in Retail Over $12 billion in the last 5 years
Internet Users Expected to reach 1.1 billion by 2025
Mobile Penetration 87% of internet traffic in India comes from mobile
E-commerce CAGR 18% (2024-2027)
Retail Employment 45 million people
PLI Scheme Allocation ₹1,700 crore for boosting retail manufacturing
Online Payment Growth 40% CAGR in digital payments expected until 2027

Latest Figures and Progress

  • E-commerce Growth: The e-commerce market is valued at $85 billion in 2023 and is expected to reach $200 billion by 2027.
  • FDI: The retail sector attracted over $12 billion in foreign direct investment over the last five years.

India’s Retail & E-commerce sector is poised for substantial growth, driven by digital transformation, strong consumer demand, and favorable government policies.