Despite challenges, India’s organised retail on growth path

Organised retail segment in India has been gradually growing with most statistics indicating robust growth ahead. As per estimates, the retail sector accounts for 22 percent of the GDP and contributes 8 percent of the total employment. Total retail sales in India is anticipated to grow from 411 billion dollars (over Rs 25, 58,000 crores) in 2011 to 804 billion dollars (over Rs 50,00,000 crores) by 2015. Factors contributing towards this rapid growth momentum include: advent of ecommerce, upbeat consumer sentiment, growing awareness, internet reach, economic growth and high disposable incomes.

Retail growth drivers

With the Modi government coming to power, consumer sentiment as well as business confidence got a clear boost. Improving global economic scenario and uptick in India’s GDP further acted as drivers to the growth. Even the Union Budget has calculated India’s real GDP growth for 2015-16 at 8.0-8.5 percent against the current year’s estimate of 7.4 percent. The Indian economy too is projected to grow 7.4 percent in the current financial compared to 6.9 percent last year, according to the new gross domestic product growth series, released by the Central Statistics Office.