India Secures Top Position in Global Retail Development Index
The 2017 Global Retail Development Index (GRDI) titled ‘The Age of Focus‘ has placed India at the top position among 30 developing countries on ease of doing business in the retail sector. This is the 16th edition of the Global Retail Development Index (GRDI).
The index has placed China at the second place. However, it has been stated that the China’s market size and the continued evolution of retail still make it one of the most attractive markets for retail investment.
India’s rapidly expanding economy, relaxation of FDI rules and the consumption boom are said to be the key drivers for India’s top ranking in the GRDI. India’s retail sector is witnessing a growth at an annual rate of 20%. In addition, the retail sector is expected to double its size by 2020. Further, the retail sector has also derived benefits from the rapidly growing e-commerce. It is estimated that the sector would grow 30 percent annually and reach USD 48 billion by 2020. Rapid urbanisation and growing middle class is expected to boost the consumption across the country.
The government has relaxed FDI regulations in key areas of the retail sector. Last year, the government took a decision to permit 100% ownership in B2B e-commerce businesses and for retailers that sell food products.
In addition, the government’s effort to boost cashless payments and reform indirect taxation with a nationwide goods and services tax (GST) are also expected to boost adoption of formal retail.
The GRDI is annually published by London-based business consultancy A T Kearney. The study is unique as it identifies the markets that are most attractive in present and also helps to identify those that offer future potential. The index ranks the 30 developing countries for retail investment worldwide and analyses 25 macroeconomic and retail-specific variables.
Categories: Business & Economy Current Affairs 2017