The Indian retail industry has experienced high growth over the last decade with a noticeable shift towards organised and modern retailing formats. India’s retail market is expected to grow at 7 per cent over the next 10 years, reaching a size of US$ 850 billion by 2020.
Traditional retail is expected to grow at 5 per cent and reach a size of US$ 650 billion (about 76 per cent), while organised retail is expected to grow at 25 per cent and reach a size of US$ 200 billion by 2020.
Online retail business is another format which has high potential for growth in the near future. India’s e-retail industry is likely to touch Rs 7,000 crore (US$ 1.26 billion) by 2015, up from Rs 2,000 crore (US$ 359.97 million) currently, as per an industry body report.
Tier-II or rural markets, spread across 6,38596 villages1 are also an attractive proposition with stronger growth prospects, less competition, and higher yields and profitability.
It is no surprise then that India has emerged as the fifth most favourable destination for international retailers, outpacing UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney’s Global Retail Development Index (GRDI) 2012.
1 Source: Census 2001 Global Source: India Brand Equity Foundation Retail Report, June 2012
Did you know ?
1/ India is a top destination for private clean energy investment, according to a research report released by The Pew Charitable Trusts.
India’s clean energy sector continued to flourish in 2011, with private investment increasing 54 per cent to US$ 10.2 billion, placing the country at sixth position among the G-20 nations.
This was the second highest growth rate among the G-20 nations.
2/ India is the global leader in the IT-business process outsourcing (BPO) industry with half of the world’s back office being located here.
Indian outsourcing revenue at US$ 59 billion for 2011, accounts for 51 per cent of the global offshore market share, as per a report by Tholons Research.
The total direct employment by Indian IT-BPO sector (as of 2011) was 1.98 million and indirect employment was 7.5 million
3/ The Indian internet economy is expected to touch Rs 10.8 trillion (US$ 203.77 billion) by 2016, according to a report titled ‘Connected World Series study’ by the Boston Consulting Group.
India’s internet economy’s growth rate of 23 per cent makes it the second fastest across the G-20 countries and ahead of many other developing nations.
The report ‘The $4.2 trillion Opportunity: The Internet Economy in G-20′, further notes that if the internet were a sector, it would be the eighth largest in India.