Market Intelligence
Consumer Goods eCommerce Industry India

INDIA OPENS TO U.S. RETAILERS

Indian consumer goods market, including eCommerce, opens to American single brand retailers. 

American retailers should consider entering India as the Indian consumer market formalizes in response to the introduction of the Goods and Services Tax (GST) and the arrival of foreign retail chains. The apparel, luxury, home décor, footwear, beauty & cosmetics and electronics segments will experience the strongest impact due to a growing appetite for international brands and better-quality products among the digitally connected consumers due to rising income levels, urbanization, and culture shift.

Changes in local sourcing and foreign investment policies signal efforts made to improve the “ease of doing business” in India.  What’s more, the ability to sell directly via eCommerce channels will help American retailers with single brand retail licenses transition into India’s eCommerce sector and to reach rural consumers in Tier II and Tier III cities. With the smart phone proliferation; logistics and digital payments are growing in tandem with the Indian retail sector.
 
The Government of India (GoI) recently announced a 100 percent Foreign Direct Investment in single brand retail trading through an automatic route and eased the policy that requires at least thirty percent local sourcing of products for first five financial years after opening the first Indian store.

For more information contact your local U.S. Commercial Service, of India, +91 22 2672 4000 or Email: office.mumbai@trade.gov

05/14/2018