Indian retail market is worth which contributes 10% to India’s GDP!
Retail accounts for 10% of the GDP of India and is one of the strongest asset of the Indian Economy.Indian retail market is worth 600 billion USD. It is one the fastest growing retail markets in the world.
The population and the changing lifestyle of the Indians is also contributing to the growth of this sector. With the growth in working population and rising living standards of the citizens, new and innovative formats for retail are coming. The Indian retail sector also becomes important because it has the second biggest affluent middle class population in the world.
Indian retail market is bound to grow to 1 trillion USD by the year 2020. Currently it experiences a growth of 12% per annum. By 2020, the entire retail sector in India would have grown by almost 60%. These are not just superfluous numbers, but the fact is that the organized retail sector in Indian is growing as predicted. It is bound to grow by leaps and bounds.Modern retail trade is bound to grow by 20% and traditional trade by 10%.
As of now organized retail is catering for 90% of the growth of this sector.India’s Business to Business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020. Online retail is expected to be at par with the physical stores in the next five years and we all can see the speed at which things are moving in this domain.
India’s total potential of Business to Consumer (B2C) is estimated to be US$ 26 billion, of which $3 billion can be achieved in the next three years from 16 product categories, according to a study by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Institute of Foreign Trade (IIFT).(source :ibef)
India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and rapid increase in the number of internet users. Various agencies have high expectations about growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach US$ 120 billion! by 2020 from US$ 30 billion in FY2016. Further, India’s e-commerce market is expected to reach US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by faster speeds on reliable telecom networks, faster adoption of online services and better variety as well as convenience.
India’s direct selling industry is expected to reach Rs 159.3 billion (US$ 2.5 billion) by 2021, if provided with a conducive environment through reforms and regulation.
India is expected to become the world’s third-largest consumer economy, reaching US$ 400 billion in consumption by 2025.
Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8 billion 2017 supported by growing exposure of international brands amongst Indian youth and higher purchasing power of the upper class in tier 2 and 3 cities, according to Assocham. (Source :ibef)
Huge Investments are pouring in the retail sector, and the country is witnessing some of the best retail formats that are indeed innovative coming in to play. This growth is also supported by the consumers as they are really been benefited by this phenomenon.