Modern Retail Industry in India Estimated to Touch $175-200 Billion by 2016

Retailing News:

India retail industry is the largest industry in India, with an employment of around 8% and contributes to over 10% of the country's GDP. Retail industry in India is expected to rise by 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

And Shopping in India has witnessed a revolution with the change in the consumer buying behavior and the whole format of shopping also altering as a result a great demand for real estate is being created. Retail Industry in India has become modern and can be seen from the fact that there are multi- stored malls, huge shopping centers, and sprawling complexes which offer food, shopping, and entertainment all under the same roof.

India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell food and related products. Thought the market has been dominated by unorganized players, the entry of domestic and international organized players is set to change the scenario.

Organized retail segment has been growing at a blistering pace, exceeding all previous estimates. According to a study by Deloitte Haskins and Sells, organized retail has increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. The fastest growing segments have been the wholesale cash and carry stores (150 per cent) followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent). Further, it estimates the organized segment to account for 25 per cent of the total sales by 2011.

In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food.

E-tailing -the online version of retail shopping has tremendous scope over the internet. As the increase in the PC and internet penetration along with the growing preference of Indian consumers to shop online has given a boost to e-tailing. An estimated 10 per cent of the total e-commerce market is accounted by e-tailing.

With today’s, net-savvy Indians making online purchases like never before, both the number and variety of products sold online has grown exponentially in the retail industry.