Indian retail Industry

India is ranked as the fifth largest retail industry in the world. Over the last few years, the Indian retail industry has been one of the fastest growing industries. Initially, the retail industry was mostly unorganized but with the changesin taste and personal preference of consumers, the industry is getting more organized. With thedemand in the market growing steadily, the industry is also expected to grow at a steady pace annually.

The origins for retail industry in India can be traced to the emergence of small general stores. These stores used to cater to the local people. The government then gradually started supporting many indigenous franchise stores that came up with the help of the Khadi and Village Industries Commission. The textile sector was one of the few sectors to come up with retail chains.Some examples are Bombay Dyeing, Raymonds, etc. Later,companies like Titanlaunched theirretail showrooms in the organized sector as well. As the years passed, new companiespoured into the picture as they moved from manufacturing to retailing.

Retail is India's largest industry and accounts for over 10% of the GDP and 8% of employment. It is one of India's fastest growing sectors with a 5% annual growth rate. Because of the huge middle class that India possesses, its untapped retail industry is one of the key attractions for global retail giants to enter newer markets. Due to changing lifestyles, growth of income amongst the middle class population and favourable demographic patterns, the Indian retail sector is expected to grow annually and the expected retail business could be worth 200 billion dollars by the year 2016.

Today, the concept and idea of shopping has undergone a major change in terms of consumer behaviourdue to the retail business. This hasbrought a new revolution in shopping in the country.

Modern retailing has entered the country and this can be seen in the form of busy shopping centres, multi-storied malls and the huge complexes that provide shopping, entertainment and food under one roof.

The food andmobile phone retail industry dominates the shopping basket in India and is already a billion dollar business. The future of the retail industry looks very promising with the growing market and with government policies becoming more favourable.

The growth pattern in retailing and food consumption by the Indian population is following a steep rise and therefore will helpnewer businessmen to enter the Indian retail industry.