Conclusion on retail industry in India

By: EconomyWatch   Date: 29 June 2010

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Contribution of Retail:

What, How and In this report we have analyzed in detail the retail industry in India. We had initially started with the evolution of the retail sector in India, then moved onto its size, distribution and the growth of the retail sector. We have also covered issues like the Foreign Direct Investment in the retail sector, the untapped opportunities that exist in the retail industry in India. We have also discussed about the bottlenecks that the retail industry is facing in India, online retailing in India and the role of Information Technology in the retail sector in India.

In this section we have coined down the major findings of our research.

Major Findings

1. The Retail Sector in India can be split up into two, the organised and the unorganized. The organized sector whose size is expected to triple by 2010 can be further split up into departmental stores, supermarkets, shopping malls etc.
2. In terms of value the size of the retail sector in India is $300 billion. The organised sector contributes about 4.6% to the total trade.

3. The retail sector in India contributes 10% to the Gross Domestic Product and 8% to the employment of the country.
4. In terms of growth the FMCG retail sector is the fastest growing unit and the retail relating to household care, confectionery etc, have lagged behind .
5. The foreign retail giants were initially restricted from making investments in India. But now FDI of 51% is permitted in India only through single branded retail outlets. Multi brand outlets are still beyond their reach. Again they can only enter the market through franchisees,. This was how Wal-Mart had entered joining hands with Bharati Enterprises.
6. On line retailing is still to leave a mark on the customers due to lacunae that we have already mentioned.

In a nutshell we may conclude that the retail industry in India has a very bright future prospect. It is expected to enrich the Indian Economy in terms of income and employment generation.

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