Knowledge Based Guidance for Sustainable Growth...


Over the last few years India has emerged as a giant in the retail sector, with all the major brands across the globe rushing to open their stores in the country. With a population of more than 1.25 billion, of which more than 50% consists of the youth, the country’s retail sector is undoubtedly here to stay, and grow.

Growing at a rate of 11.5%, the market is likely to reach USD 530 billion by 2015. In the entire retail industry, organised sector is growing at a CAGR of 23%. But, the organised market consists only of about 20% of the entire industry. With the growth in real estate, this ratio is likely to increase in the next five years and the organised sector will possess a fair share in the industry.

It is interesting to note that this industry generates maximum employment after agriculture. With a massive number local manufacturers and dealers, catering to the huge masses, the unorganised sector is employs people even in remote areas. In contrast to this, cities experience a different form of employment with a large number of shopping malls and retails chains available in multiple locations, creating a quality of service as well as a brand value.

Liberal FDI norms are also reason for the current growth rate of the retail sector. FDI of up to 51% is now permitted in an Indian company operating in the retail sector under a single brand. Expected opening up of better FDI regulations for multiple brandings has generated interest among global retail giants.


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