Retail E-Commerce

INDIA SCENARIO

Retail

100% FDI allowed in single-brand retail under the automatic route.
Liberalisation of FDI is expected to give a boost to Ease of Doing Business and Make in India.
For further details, please refer FDI Policy, Government of India
India is one of the most promising and developing marketplaces in the world. There is a great deal of desire among multinational corporations to take advantage of the consumer base in India and to enter the market first.
Increasing purchasing power has led to growing demand.
Nearly 60 shopping malls encompassing a total retail space of 23.25 million sq. ft are expected to become operational during 2023-25.

E-Commerce

100% FDI is allowed in B2B e-commerce.
100% FDI under the automatic route is permitted in the marketplace model of E-commerce.
For further details, please refer FDI Policy, Government of India
The Indian e-commerce industry is projected to reach US$ 300 billion by 2030, experiencing significant growth.
Third-party logistics providers are anticipated to manage approximately 17 billion shipments within the next seven years.
India has around 936.16 million internet subscribers, including about 350 million mature online users actively engaging in transactions.

Retail Market Size (US$ Billion)

Indian E-commerce Market (US$ billion)

UTTAR PRADESH SCENARIO

The following infrastructure development is supporting the retail and e-commerce sectors.

Dedicated Freight Corridors (EDFC with highest catchment area - ~57% & WDFC – with ~10% catchment area) in the State.
ICDs (Inland container depot) at Dadri, Agra, Mirzapur, Moradabad, Kanpur. Expanding the network of MRTS & RRTS
Logistics hubs: MMLH Dadri, MMTH Boraki, and MMT Varanasi
Planned State Capital Region- Total area of 27,00,000 Ha. including 6 districts Lucknow, Kanpur Dehat, Unnao, Sitapur, Rae Bareli, and Barabanki
Planned New Noida spread across 209.11 sq Km.
1st to have multi-modal waterways terminal on river Ganga (5 freight villages planned).

0st In terms of network of Expressway in India
Largest railway network with 16000 km+ of railway track length
0st State to have Regional Rapid Transit System (RRTS) Corridor (Meerut-Delhi)
0th International Airports (4 existing & 1 upcoming)
0nd Largest road network in India (> 400,000 km)

SECTOR HIGHLIGHTS

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DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

Greater Noida Expressway - Emerging to be a Retail Powerhouse

IKEA to invest Rs 4k Crore in retail stores in UP

Awaraj transforming old footwear industry of Agra through digital marketing and e-commerce business

To promote Banarasi handicrafts products through e-commerce portal, District Administration Varanasi and Flipkart signed a MoU.

POLICIES & SCHEMES

देखने के लिए यहां क्लिक करें यूपी एफडीआई एवं फार्च्यून 500 नीति 2023 - राजकोषीय प्रोत्साहन (भाषा हिन्दी)

Major Benefits

Capital Subsidy

25% of *ECI (excluding land cost) in Gautam Buddha Nagar and Ghaziabad regions
30% of ECI (excluding land cost) in Paschimanchal and Madhyanchal regions
35% of ECI (excluding land cost) in Bundelkhand and Purvanchal regions

Capital Subsidy will be provided in 7 equal annual instalments with annual capping of INR 100 crores

SGST Reimbursement / Refund

Option A - Net SGST reimbursement on sales:
- 100% of net SGST paid for 10 years
- Annual capping: Upto 10% of ECI, Overall capping: Upto 100% of ECI (excluding land cost and capital subsidy)
Option B - Input SGST refund on capital goods: 100% SGST refund in 5 annual instalment (Applicable only in case of inverted duty structure)

Note : Option to choose any one out of A and B is available

Land Subsidy

Upto 75% in Paschimanchal and Madhyanchal region
Upto 80% in Bundelkhand and Purvanchal region

Other Fiscal Benefits

Stamp Duty & Registration Fees: 50% - 100% exemption/ reimbursement

Electricity Duty : 100% exemption from for 5 years

Skill development subsidy : Upto INR 5,000 p.m. per person for 5 years (max. 500 persons)

Green Industry Incentives : 50% capital subsidy on the cost of Effluent Treatment Plant capped at INR 2.5 crores

Industrial Housing Incentives : Reimbursement upto 10% of the cost of development of workers' housing or dormitory for 7 years overall capped at INR 10 crores

R&D incentives: Reimbursement upto 25% of the cost of standalone R&D centre capped at INR 10 crores (with minimum capital investment of INR 20 crores)

Centers of Excellence (CoE): Grant upto 50% of the project cost capped at INR 10 crores per project
Note: Option to choose any one out of above is available

Logistics Subsidy : Reimbursement upto 50% of the transportation cost on import capped at INR 2 crores per unit (in case of shifting of existing plant from international or domestic locations to UP)

Patent cost : Reimbursement upto 75% of the cost capped at INR 10 lakh (for domestic) and INR 20 lakh (for international)

KEY INVESTMENT OPPORTUNITIES