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Retailing

India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail industry is expected to grow at 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016.

With the economy booming, competition in the marketplace is fierce. According to a report by AT Kearney and the Confederation of Indian Industry, retail is one of India's fastest growing industries with a 5 per cent compounded annual growth rate and expected revenues of US$ 320 billion in 2007. KSA-Technopak, a retail consulting and research agency, predicts that by 2010, organized retailing in India will cross the US$ 21.5-billion mark from the current size of US$ 7.5 billion. With the growth of organized retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point.


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