Retail Investments In India Have Doubled In The Last Two Years



The PE (private equity) investments into the Indian retail sector has doubled at $1.2 billion in the last two years on back of relaxation of FDI policies – 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route (against the previous 49%), as per a report by real-estate and retail consultancy firm ANAROCK.

In its “Private Equity in Indian Real Estate” report, ANAROCK stated that the total private equity inflows in the Indian retail sector between 2015-2018 stood at $1.84 billion, and of this $1.2 billion were pumped in between 2017-2018 alone. US and Canada-based PE funds together invested more than $1.13 billion into the retail sector in the Asia’s third largest economy, where the retail industry, riding on increasing consumerism, is expected to touch $3,600 billion by 2020.

US-based funds like Blackstone and Goldman Sachs invested more than $1 billion funds into the Indian retail sector between 2015 and 2018. Of this, more than $700 million went into Tier II and III cities that are growing faster than the metros due to a shortage of organised retail despite the rising disposable income and aspiration-driven consumption.