Retail in India is big business and the country is attracting large investments in the retail industry. AT Kearney ranks India as the number one destination for retail investment in their Annual Global Retail Development Index of 2005. Several of the big retailers of the world are already operating in India while others like Wal-Mart are strengthening their supply networks before starting retail operations. The potential for growth in the retail industry ensures its importance in the Indian economy in the future. On the strength of a growing middle class, a surge of BPO employees and rise in the number of working women, the retail sector is changing the way the country shops, lives and spends its leisure time. This free white paper on the retail industry explains the background and the opportunities the Indian retail industry offers. It also includes and addendum with the latest news about such giants as Walmart entering the Indian retail market.
Some key aspects of the Indian retail industry:
The government is committed to opening the Indian market and has announced it will permit foreign companies to hold a 51% stake in FDI in the retail of single-brand products in January 2006.
Only 3.5% of retail is part of organized retail sector. The potential of growth is exponential with the middle class expanding rapidly.
The food and beverage sector is the leading category where growth is taking place and has already attracted many big players in retail such as Metro and Shoprite International.