Toy chain Hamleys is set to open three stores in India – two of them by the end of next year.

The retailer will partner with Reliance Retail to open large-format stores in New Delhi, Mumbai and Bangalore. Each store will be 30,000 sq ft.

A source close to Hamleys said the retailer is keen to attract the fast growing middle class market when it makes its debut.

The Indian openings will bolster Hamleys’ international expansion, the latest stage in which was a 20,000 sq ft opening in Jordan last month.

In August it will open a 32,000 sq ft store in the Dubai Mall, followed by a standalone store in Dublin’s Dundrum Town Centre shopping scheme in October. The Dublin store will be the retailer’s first standalone store in the UK and Ireland outside of London, where its iconic Regent Street store is located.

The rapidly growing Indian retail market is worth US$330 billion (£165 billion). The country’s GDP growth for the year 2007/2008 was close to 9.1 per cent.

Marks & Spencer also plans to open in the country and revealed in April that it will embark on a joint venture with Reliance Retail to open 50 stores. Other retailers eyeing India include Matalan, Debenhams and Mothercare.

According to a CB Richard Ellis survey this year, India, along with Ukraine and Russia, is the most sought-after destination for international expansion. Of about 300 retail companies, 27 per cent either opened a store in India last year or are looking there.