Abstract: Indian retail sector is one of the most dynamic and sunrise industries in India. With Indian economy poised to grow at around 6 to 8%, Indian retail industry is poised to grow at CAGR of around of 30%. The volume of Indian retail sector is expected to be around 490 bn USD. As compared to other countries of the world like China where penetration rate is as high as 100%, in India the penetration of retail sector is merely 4 to 6%. There is a huge prospect for both the Indian as well as the foreign players in retail sector. Indian demographics are very very strong. With majority of population between age group of 25 - 40 years of age trends are very very favourable for Indian retail sector. Around 50% of Indian population falls in this age group. Moreover, the Indian retailing landscape is very very dynamic with increasing liberalization. One of the major limitation of the Indian retail sector is that is mainly dominated by the unorganized players and is highly fragmented. Indian retail sector provides ample opportunity because there is a major chunk of Rural markets which provide opportunity for the retailers from all over the world. A huge spate of reforms has made Indian retailing industry a huge opportunity for players from all over the world. Indian retail sector is divided into various sectors on basis of quantum of spending. In Indian retailing sector around 70% of the retail sector comprises of the Food and Processing industry and around 30% of the industry comprises of the apparels, electronics, mobile and other equipments. Indian retail sector should aim at addressing the major challenges faced by the Indian industry such as increasing rentals, legal and regulatory complication, increasing competition and threat faced by the large unorganized sector from the organized sector. E - Commerce is the next best thing, as far as the Indian retail industry is concerned. With only 12% of internet penetration, there is a huge scope for the growth of the Indian retail sector. With changing legislations and increasing demand for private labels, increasing income and changing attitudes, there is a huge scope for growth and development of both Single and Multi Brand retail in India.
Keywords: Indian retail sector, growth and development.
Title: Retailing Industry in India
Author: Nishi Malhotra, Priya Malhotra
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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