India's Booming Retail Sector

Know the Largest Growing Market

The year 2006 marked the beginning of the `retail revolution' through the entry of big names such as Reliance with the announcement of huge investments. But what really grabbed attention was Bharti Group's announcement of its tie-up with the world's largest retail chain, Wal-Mart. Local companies and local-foreign joint ventures are expected to more advantageously positioned than the purely foreign ones in the fledgling organised India's retailing industry.

India has topped the AT Kearney's annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian retail market -- one of India's fastest growing industries -- is expected to grow from US$ 350 billion to US$ 427 billion by 2010. According to Euromonitor International, the Indian Retail market will grow in value terms by a total of 39.6 per cent between 2006 and 2011, averaging growth of almost 7 per cent a year.

India's first true shopping mall - complete with food courts, recreation facilities and large car parking space - was inaugurated as lately as in 1999 in Mumbai. (this mall is called "Crossroads"). The prospects are very encouraging. The first steps towards sophisticated retailing are being taken, and "Crossroads" is the best example of this awakening. More such malls have been planned in the other big cities of India. An FDI Confidence Index survey done by AT Kearney, retail industry is one of the most attractive sectors for FDI (foreign direct investment) in India and foreign retail chains would make a great impact.