- With a population of more than a billion of which 33.2% reside in urban areas, the Indian market provides a wide customer base and is poised to be the 3rd largest consumer market by 2025.
- India ranked 2nd among all emerging markets on A.T. Kearney’s FDI Confidence Index 2018, and was one of the top choices for expansion among retailers in emerging APAC economies*.
- Since 2016, almost USD 1 billion has been invested in retail real estate by institutional/PE investors; top four investors have cumulatively acquired more than 14 million sq. ft. of retail space.
- Relaxation in FDI norms have also resulted in greater investment commitment by brands; H&M, IKEA, Decathalon, Miniso operate under the 100% ownership route.
- While investment norms have been relaxed; further support is needed via relaxations for multi-brand retail and import duties to ensure a level playing field.
- Concerted efforts are also required to address challenges to growth such as inadequate quality retail real estate space and infrastructure hurdles.
* CBRE’s ‘How Active are Retailers in APAC?”, 2017