Recent reports have hinted that global retailers might be reducing their presence in India.
But the data tells a different story. Walmart, Amazon, IKEA, Target, and H&M are actually expanding heavily in India—they are increasing purchases from Indian suppliers, investing more money, and creating thousands of local jobs.
Walmart Shifts Focus, Not Direction
Walmart shifted from opening physical stores to making India a major source of goods and a technology hub. In 2018, 2% of Walmart’s U.S. imports came from India. By 2023, that share had risen to 25%, while imports from China fell from 80% to 60%.
The company currently sources about $3 billion worth of goods from India every year and plans to raise that to $10 billion by 2027. Over the past 20 years, Walmart has bought $30 billion in Indian products, from electronics and packaged food to textiles.
Its $16 billion purchase stake in Flipkart in 2018 gave it a strong foothold in Indian e-commerce. Flipkart now reaches more than 300 million households, while its digital payments venture PhonePe has over 600 million users. Walmart’s Vriddhi program had encouraged and trained 70,000 small businesses to sell online, with a goal of 100,000 more by 2028.
Amazon’s long-term vision
Amazon is a popular household name in India, especially when it comes to e-commerce purchases. Amazon has a record of investments, having invested $11 billion in India since 2013, with a projection to reach $26 billion by 2030. In 2023 alone, Amazon exported Indian goods worth $13 billion, with a target of $80 billion by 2030.
This company helped to digitise 12 million small businesses and to sell their products online by creating 1.2 million jobs in India.
IKEA is expanding with stores & sources
IKEA has invested around $1.4 billion in India; it is operating with five stores in major cities and planning for expansion. India is now its second-largest sourcing hub after China, supplying $1.2 billion worth of goods annually. The company plans to double that by 2028.
Target and H&M are building steadily
Target does not have retail stores in India but sources $1.5 billion in goods each year and operates a 4,000-employee tech centre in Bengaluru.
H&M runs 50 stores in India and buys $800 million worth of products from over 200 local suppliers each year. Since 2020, its sourcing from India has doubled.
The Misconception
Talk of a pullback comes from fewer new physical stores, strict foreign investment rules, and continued sourcing from other countries. But these are strategic adjustments towards further expansion and not a sign of withdrawal.
With one of the lowest manufacturing costs, a good number of skilled workforce and around 300 million online shoppers, India has become a vital part of global retail supply chains. Meetings between company leaders and Prime Minister Narendra Modi highlight the long-term nature of this commitment.
The data & figures of global retailers show that they are not leaving India; instead, they are investing more deeply into expansion, sourcing goods and services, and building stronger ties with local businesses.
