What: Decathlon plans to double its Indian sourcing to 15% of global procurement following the EU-India Free Trade Agreement.

Why it is important: The move highlights how trade agreements can reshape global retail supply chains, with India's shorter lead times and growing manufacturing capabilities positioning it as a competitive alternative to traditional Asian sourcing hubs.

Decathlon is poised to significantly expand its sourcing operations in India once the EU Free Trade Agreement is finalised. The French sporting goods retailer currently sources about 6% of its global procurement from India, equivalent to 100 million units, and plans to increase this to 15% within a year of the FTA implementation. This strategic shift is driven by India's competitive advantages, including a 12-day shorter lead time to Europe compared to Southeast Asian competitors like Vietnam, Bangladesh, and Indonesia. The elimination of the current 9.6% export duty through the FTA would fundamentally alter the competitive landscape. The company's sourcing network encompasses 65 suppliers operating 110 factories across India, primarily focusing on textile products and raw materials worth ₹4,150 crore, with European procurement accounting for ₹2,100 crore. This expansion aligns with broader bilateral trade objectives, as India's trade in goods with the EU currently stands at $137.4 billion.

IADS Notes: The strategic shift in sourcing aligns with significant developments in India's retail infrastructure. In November 2024, the country established Free Trade Warehousing Zones to enhance supply chain efficiency, while March 2025 saw India preparing enhanced tariff reduction proposals to facilitate international trade. This comes as BCG projects India's retail market to reach $2 trillion by 2033, supported by Decathlon's August 2024 announcement of a USD 111 million investment to boost local manufacturing. The timing is particularly strategic as India emerges as a key alternative in global supply chains, with retail leasing surging 55% year-on-year in major cities.

Decathlon plans to double sourcing from India once EU FTA is finalised