Retail Industry in India since 1991 has been growing at a phenomenal pace, with several drastic changes resulting in customers being flooded with multiplicity of choices under one roof. Today, the dynamic and vibrant Retail Industry constitutes more than 10% of India’s GDP and around 8% of India’s employment market.
Though there has been an impressive growth over the past two decades, still a large segment of the industry remains unorganized. Despite that however the Retail Industry in India is worth more than US$ 400 billion, with several domestic and international players entering the already congested retail market, expanding across India, especially to Tier-II & Tier-III cities and rural areas.
A joint report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and noted consultancy company Price Waterhouse Coopers (PwC) reveals that by 2020, India’s retail sector is expected to reach US$ 1.1 to 1.2 trillion. Another report by Boston Consulting Group and Retailer’s Association of India (RAI), predicts that India’s retail sector will double its worth to US$ 1 trillion by the year 2020. The phenomenal rise will be largely fuelled by factors like hike in disposable income, rapid urbanization and changes in consumer behavior towards various modes of shopping.
Currently, FDI is pegged at 51% in the retail sector with strong chances of it increasing to 100% in the coming years. Once that happens, India’s Retail Industry will become more organized and professional, leading to generation of more employment opportunities.