Growth Opportunities for Indian Retail Sector
The brighter side for the Indian Retail sector is the Market Size: India ranks 16 in the global market as per the FDI Confidence Index. Also, India is the 5th largest retail destination. In addition, Indian Retail market reached 950 billion US$ in 2018 and is expected to reach 1.1 Trillion in 2020. Also, With the rapid increase in internet users, India Retail is projected as the World’s fastest-growing e-commerce market.
Investment Spree is in progress According to the Indian Retail, Trading has received Foreign Direct Investment equity of 2.12 billion US$ during the period April-2000 to March 2020. Importantly the Indian Retail sector is able to obtain 970 million US$ from different private equity funds in the year 2019. Also, Walmart Investment Cooperative UA has invested Rs.2.75 billion in its India office Wal-Mart India Pvt. Ltd.
Indian Booming Retail Sector since 2019
India is a country of retailers. There are 12 million retail sources in India, contrasted with around 1,000,000 in the U.S. Most fall under what is known as the conventional retail classification: little retail sources, possessed and worked by an individual – usually known as mother and-pop stores in the U.S.
However, the retail atmosphere in India is developing more quickly than most places over the world. India currently has retail chains, strength stores and shopping centers – the cutting edge retail design. Retailers ought to look at India as an extremely alluring retail market. Since 2003, India has move from fifth to third to the main most alluring developing retail market on the planet, pushing Russia to number two, as per the A.T. Kearney Global Retail Development Index for arising retail advertises.
The India retail market has developed quickly and has the fourth biggest economy on the planet, which is bigger than the U.K. also, Germany on a buying equality value premise. There are a few reasons why India has become the top arising retail market. To begin with, the entrance of present day design retailing is just around three percent, so there is a colossal measure of space for development. Second, the retail market is assessed at $300 billion for every annum and developing at more than eight to 10 percent for each annum generally speaking, which is bigger than Russia and Brazil.
What’s more, current retail in India is required to develop by in excess of 35 percent for the following five to seven years. It is one of the quickest developing economies on the planet. Indian shoppers are getting wealthier and are requesting more from retailers. There are a few elements driving the development to present day retail in India.
Glimpse of Challenges Faced by Indian Retailers
Though India is one of the fastest-growing Retail Market many generalized challenges scare new entrepreneurs entering the segment. Competition from Unorganized Retailers are the biggest challenge that every business faces.
Effect of COVID-19 on Indian Retail Market
During Lockdown a study directed by Retailers Association of India says, In Non-Grocery Retails 80 to 100% of deals is decreased. As 85 percent of retail costs are fixed retailers are confronting huge weight. Above all Retail industry is confronting serious liquidity challenges that can prompt immense joblessness. While the Food-Retailers hope to acquire 56 percent of benefits when contrasted with the earlier year. The Non-Food Retailers hope to acquire 40% of earlier year benefits in the following a half year gave pandemic circumstance doesn’t intensify. However, Indian Retail Market Size is indicating a developing pattern sudden attack of the pandemic has exacerbated the circumstance for retailers.