India ranks 2nd on GDRI in ease of doing business: Study

The 2016 Global Retail Development Index (GRDI) has published a study which ranks India second among 30 developing countries this year on ease of doing business. China held the number one position. India jumped 13 positions to reach this far.

The reason behind the change of position is pick-up in GDP growth and better clarity on FDI regulations have helped India achieve a second ranking. The GRDI ranks top 30 developing countries for retail investment worldwide.

India’s retail sector has expanded at a CAGR of 8.8 percent between 2013 and 2015, says a study by London-based business consultancy AT Kearney. The study further said that India has become the world’s fastest growing economy. Along with a large population base and the easing of FDI norms in the sector has made it an even more attractive market. Even as industry experts would like to see e-commerce propel India’s growth and make it a more attractive proposition, there are several challenges that foreign retailers face. For one, India is a complex and challenging where understanding dynamics at the state level is important. Also, infrastructure bottlenecks including labour laws, complex regulations, high labour attrition rates remain areas of concerns for retailers.

India’s retail sector has benefited largely from the rapid growth of e-commerce. Today, India is the world’s second largest internet market and the increasing internet and smartphone penetration is contributing to the expansion of e-commerce.

The GRDI analyses 25 macroeconomic and retail-specific variables to help retailers devise successful global strategies to identify emerging market investment opportunities. The study is unique in that it not only identifies the markets that are most attractive but also those that offer future potential.