XYZ Co. Ltd. has been engaged in retailing business in UK. The Management of the Company has decided to extend the business of the company internationally. Initially, the Company started survey for Indian Markets and pre

Indian economy is one of the vibrant economies of the world. It has attracted a large number of companies of the world to expend their business operations/activities in India. Accordingly XYZ Co. Ltd is also considering the same. The company must consider the significant drivers of international trade such as higher rate of profit, expansion of production capacities, political stability, availability of technology and competent human resources, cost of transportation, raw materials availability, policies of the Government, growth in market share, etc. International marketing strategies adopted by the company would be beneficial due to policy framework of the Government of India. The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country's Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world's fifth-largest global destination in the retail space. Indian Retail Industry has immense potential as India has the second largest population with affluent middle class, rapid urbanisation and solid growth of internet. India's retail market is expected to grow at a Compound Annual Growth Rate (CAGR) of 10 per cent to US$ 1.6 trillion by 2026 from US$ 641 billion in 2016. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent. India has replaced China as the most promising markets for retail expansion, supported by expanding economy, coupled with booming consumption rates, urbanizing population and growing middle class. 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. Various agencies have high expectations about growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach US$ 120 billion by 2020 from US$ 30 billion in FY2016. Further, India's e-commerce market is expected to reach US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by faster speeds on reliable telecom networks, faster adoption of online services and better variety as well as convenience. Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route, thereby providing clarity on the existing businesses of e-commerce companies operating in India. XYZ Ltd. can invest in e-marketing portal and start online retail business in India. For retail outlets, India has following Retail FDI policy: 51% FDI is allowed in Multi -Brand Retail and 100% FDI is allowed in Single Brand Retail.