Indian Reatil Market at a Glance

                    Indian retail market at a glance
         The Indian retail market is the fifth largest retail destination, and it is ranked second after Vietnam as the most attractive emerging market for investment in the retail sector by AT Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail trade in the country's GDP was between 8–10 per cent in 2007. It is currently around 12 per cent, and is likely to reach 22 per cent by 2010. 
         A report by AT Kearney said "The consumer spending in India has increased by an impressive 75 per cent in the last four years and will quadruple in the next 20 years." Moreover, India recently topped the Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company. The report revealed that Indians are "the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months." 
CB Richard Ellis' report states that India's retail market is poised to grow to US$ 833 billion by 2013. The report further stated that organized retail that currently accounts for less than 5 per cent of the total retail market is expected to register a compound annual growth rate of 40 per cent and swell to US$ 107 billion by 2013. 
          In a joint study recently conducted by ASSOCHAM and KPMG, the following findings were revealed:
 The total retail market size in India in 2008 was estimated at US$ 353 billion. 
 The annual growth of the retail market in India is expected to be around 8 per cent. 
 The total retail market size in India is likely to touch US$ 416 billion by 2010. 
 The present share of organized retail sector is estimated at 7 per cent. 
 The estimated annual growth of organized retail sector is 40 per cent. 
 The size of organized retail sector by 2010 is estimated to reach US$ 51 billion. 
 The estimated share of organized retail in total retail by 2010 is 12 per cent. 
 The investment into modern retailing formats over the coming 4-5 years is expected to be around US$ 25-30 billion. 

Growth still continues -

           Despite the global economic slowdown, Indian retailers are still optimistic about the India growth story. Speaking on the issue, Mr Tarun Joshi, CEO and MD of Brandhouse Retails said “Fashion retail has not been impacted in a big way. Not even 0.5 per cent of the working population has been hit in India.” The great Indian consumer market is still strong. Economic Times revealed that most mass consumer goods and service in India were not much affected by the global economic slowdown. Despite the inflation experienced during the period, the second-quarter results of leading 70 consumer-related firms revealed that their aggregate revenues increased by 8.5 per cent during the September 2008 quarter over the same period in 2007. Even though this was a tad lower than the 9 per cent growth posted during the first quarter of 2008-09, it was a lot higher than the 7 per cent registered during the previous three quarters for these firms.