Carrefour Partners with Dubai’s Apparel Group to Make a Comeback in India After 2014 Exit

India’s grocery and food retail investment landscape

India’s grocery and food retail sector is one of the most dynamic and rapidly growing markets globally, driven by a combination of increasing consumer spending, urbanization, and rising disposable incomes. With a population of 1.4 billion and a large middle-class base, the sector is estimated to contribute nearly 65% to the country’s total retail market, making it a prime target for both domestic and international investors.

Foreign direct investment (FDI) in the food retail sector has been progressively liberalized, allowing 100% FDI in food retail for companies selling domestically produced and processed foods. This policy has attracted global players, seeking to capitalize on India’s burgeoning consumer base. The market is also witnessing the rise of organized retail formats such as supermarkets, hypermarkets, and e-commerce platforms, as consumers shift from traditional markets to modern retail experiences.

Challenges, such as fragmented supply chains and regulatory hurdles, remain, but significant improvements in logistics, infrastructure, and digitalization are helping to overcome these barriers. India’s growing online grocery market, boosted by e-commerce giants and last-mile delivery innovations, is another key factor drawing investment. Despite inflationary pressures, the sector’s long-term growth prospects remain strong, making it a strategic area for global retailers like Carrefour to enter and expand.