E ditor’s Letter
The Indian retail industry has emerged more dynamic and fast-paced due to the entry of several major players. It is believed that total consumption expenditure will reach almost $3,600 billion by 2020 from $1,824 billion last year.
Accounting for over 10% of GDP and around 8% of overall employment, the country is the world’s fifth-largest global destination in the retail space. India’s retail market is expected to increase by 60% to touch $1.1 trillion by 2020, on the back of factors like rising incomes and lifestyle changes by middle class and increased digital connectivity. While the overall retail market is expected to grow at 12% per annum, e-commerce is expected to be at par with the physical stores soon.
The industry has received FDI equity inflows totalling $1.42 billion during 2000 to 2018. Investments by private equity firms and wealth firms in Indian retail sector reached $800 million last year. The development can be attributed to the government’s several initiatives to improve the industry; it ‘s expected that it may change the FDI rules in other segments as well.
The government has allowed 100% FDI in online retail of goods and services through the automatic route, providing clarity. E-commerce is expanding steadily in the country and it is probably creating the biggest revolution in the industry.
It’s clear that the opportunities will grow, resulting in a healthy as well as a robust competition. With festive season about to begin, and big sales already happening, stakeholders have more to gain than to lose.
Taking this opportunity, we would like to wish you a wonderful and prosperous Diwali.