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Indian Retail Market
The success stories of the Indian Economy in recent years has centered around the Indian Retail Market. The Retail Industry in India has come a long way from the traditional unorganized retail sector consisting of petty shop-owners selling a wide variety of articles both individually and collectively to the modern organized retail sector consisting of “Retail Chains” and other departmental stores providing everything under a single roof.
The phenomenon encircling the Retail Market in India is being witnessed as a major propeller for growth by various business houses within and outside India. The organized sector is overshadowing the unorganized sector in terms of its share of contribution towards growth of the retail sector.
The upsurge of the organized sector in recent years can be attributed to the following reasons:
- Encouragement of Foreign Direct Investment (FDI) by the Central Government.
- A rise in the disposable income of the consumers that has risen the demand for retail goods.
- The changing tastes and preferences of buyers regarding markets
The growing prospects of the Indian Retail Market can be highlighted by various statistical estimates. The most striking one among them has been provided by The Federation of Indian Chamber of Commerce and Industries (FICCI). Based on a data presented by The KSA Technopak Advisors which is a leading retail and consumer insight consulting firm ,FICCI has projected that the Retail Industry in India is likely to cross Rs. 10,000 billion by 2010 and the share of the organized sector in it is likely to exceed 20% which presently is at around 3% mark.
The major consequence of the booming Indian Retail Market can be witnessed in the labor market.
Since the retail market is heavily dependent on manpower, the growing prospects of the Retail Sector in India would be responsible for providing employment to as many as a million new people mainly in the organized sector who will be trained to staff the forthcoming retail ventures within year 2010.
The other forms of figurative information provided by FICCI which are worth mentioning are:
- In the coming seven years, the share of FDI to urban areas would be as high as 92% and the remaining would be bestowed to rural areas.
- The companies dealing with organized retailing are expected to grow at the rate of 50% every year till at least year 2010 .
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