The consumption across the Country is being driven by an increasing middle class and a higher income level
India has secured the top position among 30 developing nations, on the ease of doing business. A report showed the Global Retail Index, which reflected on the expanding economy of the Country, along with the ease of foreign direct investment and a consumption boom. These factors are the key drivers for the top ranking of India in the GRDI. It ranks the top 30 developing nations in terms of retail investment worldwide and also analyses 25 macroeconomics and retail variables. The report ranked China in the second place despite the overall growth in the economy and the market size. The evolution of the retail industry makes China one of the most attractive markets for retail investments. The study aims to identify the markets that are most attractive in terms of investment and show a higher future growth potential. â€‹
For India, the report mentions that the retail sector of the country has been growing at a rate of 20%. The total sales across the Country has surpassed the $1 trillion mark and the sector is expected to double in terms of size by 2020. Retail is an important part of the development initiatives in the Country, with Make in India and Skill India, there has been a job creation opportunity and the foreign direct investment has also improved, which has added to the ease of doing business. The Government has allowed 100% foreign ownership in the B2B businesses and also encouraged Make in India at every step. This has worked as an advantage for the retailers as well as the manufacturers. The efforts to boost cashless payments and bring a reform to indirect taxation are expected to accelerate the adoption of modern retail.
The reason behind India securing the top spot in the index is also a rapid urbanization and an increasing middle class with a higher income level. They are driving the consumption across the country and ensuring that the foreign investment increases rapidly. The rapid growth in e commerce has benefitted the Indian retail sector. The industry is projected to grow at 30% annually and to reach $48 billion by 2020. Retailers are quickly seizing the opportunity and making the most of the growing economy. The digitalization and the nationwide adoption of GST will accelerate the formal retail and increase its share in the country.
The top ranking of India shows confidence in the retail market as well as the high growth potential. It can be seen as a clear vote of confidence that gives a boost to the retail sector and also shows that the increasing foreign investment is going the right way. With an increase in the income of the middle class, the economy is taking the right steps to boost the growth and development in the long run. The Indian Government has taken various measures to increase the impact of retail on the economy as a whole.