After the government opened the single-brand retail allowing foreign retailers to possess up to 100 per cent stake in India, many global giants are studying the market surveying for potential openings in the country. Given the slow economy and declining consumer mood in western countries, these brands are looking at developing economies like India. India’s retail market is estimated to generate sales of about $500 billion (Rs 27,94, 250 crores) annually, making it an attractive destination for foreign firms.

Gap currently operates in India through a liaison office, The Gap International Sourcing, which trades woven fabrics both locally and from other countries in the Asia-Pacific region. The retailer has been expanding abroad but plans to shut more than one fifth of its stores in North America over the next two years.

Gap sells clothing, accessories, and personal care products for men, women, children, and babies under the Gap, banana republic, Old Navy, Piperlime, and Athleta brands. The company is mushroomed over about 90 countries through about 3,000 company-operated stores, as well as over 200 franchise stores and e-commerce sites.