DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA

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Slide Hon’ble Chief Minister Welcome to Telangana. The best state to do business in India. Ease of Doing Business star1 star1 star1 One of the
Best Performing States
star1 star1 Sri K Chandrashekar Rao Sri K T Rama Rao Hon'ble Minister for IC,
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Slide As India emerges as a Premier Investment destination the state of
Telangana, the Youngest state, marches ahead as a torchbearer
for the new india of the world.
Telangana-LOGO Hyderabad has been ranked Number One in the Aerospace Cities of the Future
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Slide As India emerges as a Premier Investment destination the state of
Telangana, the Youngest state, marches ahead as a torchbearer
for the new india of the world.
Telangana-LOGO Hyderabad-the best city to live in
Fifth Year in a row
-Mercer's Ranking
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Retail’s contribution to state’s GSDP in 2020-21
0 th
Largest Retail Destination (India) in global space
$ 0 Tn
Indian Retail Market expected to reach in 2026
vatsala-mishra
Vatsala Mishra
Director,
MSME & Retail

Industry outlook, Opportunity in Telangana

India

India is fifth largest global destination in the Retail space. Retail business is one of the important pillars of the economy and accounts for about 10% of India’s GDP and 8% of employment.

The Overall Retail market is set to cross the $1.75 trillion mark by 2026 from $950 bn in 2018. India’s e-commerce retail market which stood at $30 bn in 2019 is also set to grow at a CAGR of 30% for gross merchandise value to be worth $200 bn by 2026. Direct-to-Consumer segment could have a US $100 billion addressable market by 2025. India’s retail and logistics industry employs about 40 million Indians. By 2021 traditional retail will hold a major share of 75%, organized retail share will reach 18% and e-commerce retail share will reach 7% of the total retail market.

India ranks among the best countries to invest in Retail space. According to a report by World Economic Forum, India will be the world’s third-largest consumer market by 2030, behind the US and China. Factors that make India so attractive include the second largest population in the world, a middle class of 600 Mn people, increasing urbanization, rising household incomes, connected rural consumers and increasing consumer spending. India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. 

Telangana

Telangana is one of the leading states in Retail Business comprising of enterprises engaged in retailing goods and services. These enterprises fall into various segments, which include food and grocery, apparel, footwear, consumer durables, home appliances and equipment, restaurants, cinema halls, multiplexes, home furnishing and furniture, jewelry, books, music, watches, pharmaceuticals, beauty and healthcare. These companies use multiple channels of sale including brick and mortar, direct selling, e-commerce and other channels. The State, since its formation, has laid special emphasis on various growth engines and it rightfully acknowledges Retail as one of those.

  • Telangana State Support to Retail: 
    • Simplification of regulations, increasing Ease of Doing Business
    • Empowerment of farmers, promotion of grass-root & SME entrepreneurship
    • Technology investment, infrastructure development and creation of new retail formats (REZ)
    • Increasing employment opportunities, training and upskilling of retail employees
    • Sustainable growth and environment protection
    • Mega Retail projects to attract tailor-made incentives

Major Investments

Amazon
ikea
1+
H&M
BoConcept

Other Investments

 
 
 
 
 
 
 
  • After success in Hyderabad, QuickrBazaar plans to set up eight experience zones in smaller cities of Telangana such as Nizamabad, Nalgonda, Mancherial, Khammam and Kothagudem·
  • Flipkart opens datacentre in Hyderabad; second after Chennai, to support its core operations·
  • OnePlus unveils a new experience store in Hyderabad. Spread across 16,000 sqft, this new experience store is called the “OnePlus Nizam Palace” and is their largest store in the world.
  • Laminates and vitrified tile maker Royale Touche which has two design outlets in Hyderabad and one in Karimnagar, is looking to open more outlets in and around Hyderabad, including tier-2 and tier-3 cities in Telangana.

Government Support

 
  • FDI – Recent policy changes allow 100% FDI under the automatic route for :
    • Cash & carry wholesale trading
    • E-commerce (B2B & marketplace for B2C)
    • Single brand product retail (online presence allowed)
    • Duty-free shops
    • Food product retail
  • FDI – 51% FDI allowance for:
    • Multi-brand product retail (online presence not allowed)

Industry Speaks

Telangana is special for IKEA as we opened our first store in India in Hyderabad on 9 th  August 2018. It is our home ground in India and the supportive environment provided by the State Government has been positive and very welcoming. As a next step towards strengthening our collaboration, we look forward to partnering with the State Government in growing the retail industry and make it a great place to work with a focus on co-workers, sustainability, diversity and Inclusion. All together providing a great shopping experience to our customers.

Jesper Brodin
CEO & President, INGKA  Group

Telangana is an important state and region for Walmart India's Cash & Carry business and Flipkart. We continue to benefit from operating in Telangana and have provided significant investment, creating thousands of jobs and building infrastructure. We very much appreciate the support extended by the government under the leadership of Honorable Chief Minister K. Chandrashekar Rao and Minister KT Rama Rao. The ‘Ease of Doing Business’ in the state has been among the best, and we look forward to continuing to serve our customers and communities in Telangana.

Judith McKenna
CEO, Walmart International

Telangana has been home to our IT operations since 2005-06 and our presence in the state has grown multifold since then. With a pool of quality talent, state-of-the art infrastructure and a progressive government, the state was a natural choice for us to set up our largest campus in India here. For Amazon, India continues to be one of our highest priority investments and we plan to invest with a long-term focus.

David Zapolsky
SVP & General Counsel Legal, Amazon

We are excited to inaugurate our largest campus building globally here in India at Hyderabad. I would like to thank the Government of Telangana for its investment-friendly policies and continued support that has always encouraged us to continue to invest and grow our operations here.

Amit Agarwal
SVP & Country Manager, Amazon India

Partner Organizations

 
 
 
  • Retailers Association of India (RAI) – is the unified voice of retailers in India. A not-for-profit organisation, RAI works with all stakeholders for creating the right environment for the growth of modern retail industry in India. It encourages, develops, facilitates and supports retailers to modernise and adopt best practices that will delight customers.

Enabling Factors

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Literacy Rate in the state of Telangana
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Population in the state of Telangana
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Best Quality of Living on Mercer Index five years
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Decrease in Rentals compared with Bangalore

Queries

 
 

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