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Sector brief 05 of 08

Retail, Consumer & E-commerce

Single-brand retail, wholesale and marketplaces take 100% FDI on the automatic route; multi-brand retail is capped at 51% with approval. Inventory e-commerce is open only for exports since 3 September 2026. Sourcing proof, marketplace neutrality and consumer rules carry most of the risk.

100%FDI in single-brand retail under the automatic route
USD 4.0 bnFDI equity into trading in FY2025-26 (DPIIT)
56.7%Private consumption share of GDP, FY2025-26 (MoSPI)

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Cover of the IMC brief: Retail, Consumer & E-commerce

In this brief

Everything in this sector brief

11 pages, from the market case to the set-up roadmap and every incentive with its status.

Overview

Retail, consumer and e-commerce

Single-brand retail, wholesale and marketplaces take 100% FDI on the automatic route; multi-brand retail is capped at 51% with approval. Inventory e-commerce is open only for exports since 3 September 2026. Sourcing proof, marketplace neutrality and consumer rules carry most of the risk.

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Recent investments

Recent investments in retail and e-commerce

Global retailers are putting capital into stores, logistics and fast delivery. Four announcements since December 2025 by foreign groups already operating in India, plus the Lush licensing re-entry, listed as public examples with their sources.

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FDI rules

FDI rules for retail and e-commerce

Single-brand retail, wholesale and marketplaces allow 100% FDI on the automatic route; multi-brand retail is capped at 51% with Government approval and allowed only in consenting states. Inventory e-commerce is open for exports only, since 3 September 2026.

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Regulators

Regulators and registrations for retail

Stores need state registrations; cosmetics, food and packaged goods add more. Most approvals are routine but product-specific, so each category a brand sells can bring its own regulator. Map them before the first import.

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Central incentives

Central incentives for consumer brands

Central support goes mainly to manufacturing and jobs, which matters for brands meeting the 30% local-sourcing rule or making in India. Budget 2026-27 adds courier-export and footwear measures. Status is shown as printed, as of 1 October 2026.

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State incentives

State incentives for retail and consumer

States offer SGST refunds, capital subsidies and longer trading hours. Support mostly rewards manufacturing, warehousing and cold chains that supply retail. Haryana, Karnataka and Maharashtra are among the states that have agreed to FDI in multi-brand retail.

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Tax and zones

Tax, customs and zones for consumer brands

GST cuts lowered tax on most consumer goods and the personal-import tariff is now 10%. A foreign-owned company can pay 25.168%; a branch pays 36.40–38.22%. Rates are for tax year 2026-27, the first year under the Income-tax Act 2025.

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Set-up roadmap

Set-up roadmap for consumer brands

From entry decision to first store in ten steps: entry model, land-border screening, brand agreement, GST, store registrations, product approvals, India sourcing, online launch, data and consumer rules, and state warehouse incentives. Entry vehicles and incorporation follow.

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What to watch

What to watch in retail and e-commerce

Sourcing proof, marketplace neutrality and consumer rules carry most of the risk for foreign consumer brands. Each watch-out below is drawn from the sector brochure, with the rule behind it and where to read more.

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Recent changes

Recent changes in retail and e-commerce

What changed since 2025 for retail, consumer and e-commerce businesses in India, in date order, with the effect on investors and the original source. A second table lists other dated changes stated elsewhere in the sector brochure.

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Sources

Sources for retail and e-commerce

The full reference list behind the retail, consumer and e-commerce pages, as cited in the sector brief dated October 2026. Secondary sources are marked; web pages were retrieved on or before 1 October 2026.

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Updates

Recent changes

All changes
  1. Press Note 3 of 2026 allows inventory e-commerce for exports of Indian goodsFDI policy · DPIIT Press Note 3 (2026); EY, 25 Sep 2026
    medium impact
  2. E-commerce sellers of imported goods must offer a country-of-origin filterSector rules · Legal Metrology rules, G.S.R. 128(E), 13 Feb 2026
    low impact
  3. DPDP Rules notified; core data-protection duties apply from 13 May 2027Sector rules · MeitY, DPDP Rules 2025 (G.S.R. 846(E))
    high impact
  4. high impact

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