India Could Become World’s Third-Largest Economy in 2–3 Years; Retail Sector Needs NRI and FDI Push: Dr. Dhananjay Datar

Mumbai, Maharashtra, India | 2nd February 2026: India has the potential to emerge as the world’s third-largest economy within the next two to three years, driven by expanding global trade and growing export opportunities, said Dr. Dhananjay Datar, Chairman of Adil Group of Super Stores (Dubai) and popularly known as the “Masala King.”

He noted that recently signed trade agreements with the United Kingdom, New Zealand, the United Arab Emirates and the European Union are expected to significantly boost India’s exports and strengthen its global economic position. However, he expressed disappointment that the latest Union Budget did not announce specific measures to encourage Non-Resident Indian (NRI) investments or enhance growth in India’s retail sector.

Welcoming the Union Budget, Dr. Datar said, “The Indian retail sector has enormous untapped potential to contribute to economic growth. Unfortunately, the country has a limited number of professionals in this sector, and high taxation prevents them from competing effectively in international markets. The government should reduce the tax burden on professionals and the general public, while encouraging NRIs and international businesses to invest directly in India’s retail industry.”

He further pointed out that despite India’s large population and the vast turnover potential of the retail market, the shortage of skilled professionals continues to hinder domestic growth. “As a result, many Indians go abroad to establish businesses, while large-scale employment generation within the country remains limited. Wage levels in India also remain less attractive compared to global markets,” he said.

Dr. Datar emphasized that attracting NRIs and foreign investors through tax incentives and liberalized foreign direct investment (FDI) policies could transform the sector. “If the government encourages direct NRI and international investment in Indian retail, it will lead to job creation and generate both direct and indirect employment opportunities. Higher wages will improve living standards, and increased competition among professionals will reduce product prices, making goods more affordable for consumers,” he added.

He also observed that many NRIs operate highly successful businesses across the world but remain hesitant to invest in India due to policy and taxation concerns. “This mindset needs to change if India wants to fully realize the potential of its retail economy,” he said.

Highlighting the sector’s future prospects, Dr. Datar noted that India has transitioned from being a buyer’s market to a seller’s market in recent years. With the right policy support and targeted incentives, he said, India’s retail sector could become a major driver of economic growth and employment in the coming decade.