Retailing is the largest private sector entity in the world economy today with global spectrum exceeding $ 7.3 trillion. Notwithstanding with the India’s true retail scenario of which majority are in the unorganized sector, the organized ones are expected to grow by 25-30 per cent on YOY basis, promising to generate about 12 per cent of country’s GDP. It will, in future be the largest source of employment after agriculture and industries. In cue with the liberalization policy of the government that has opened up retail market for MNCs like Wal-mart, Carrefour, Metro AG, Tesco etc. which will make this sector more attractive and highly competitive too.
Indian modern retail sector, which witnessed a phase of consolidation from the second half of 2008 till well into early 2010, has undergone a learning phase and encountered significant changes since the country’s economy saw its first ray of hope, thanks to the bold step of liberalization, nearly two decades ago and is fast emerging. The nations that have enjoyed greater economic and social progress have always been those with a strong retail sector. Today retailers around the world have become highly valued and necessary members of the society.
Having weathered the downturn storm, organized retailers are now looking ahead, chalking out massive growth plan and eyeing profitability. As a result, economic activities have stepped up and the GDP growth is expected to be around 7.5 per cent by the end of this fiscal, modern retailers are gearing up for expansion in 2010. Inviting foreign investors to enter into the country’s retail arena could serve for the best interest of this nation and its people. The government in power must initiate necessary arrangements to attract multinational players to invest in this fortune sector. Indian retail thus far witnessed major transformation of unorganized family-owned retail formats to today’s organized retailing. The retail revolution, as is foreseen, will eventually restructure the Indian economy and would usher in accelerating an irreversible growth that is beneficial to every stakeholders of the society.
Cite this article:
Pranab K Bhattacharya. Booming Retail Sector: Destination India. Asian J. Management 1(1): Jan. – Mar. 2010 page 14-21.