Thriving Indian Retail Market

Indian Retail Market is expected to grow at a CAGR of 13% till 2018. Globally, India is among the top 10 retail markets. In 2013, the Indian retail sector
was estimated at USD 520 billion and was among the largest employers in the country. By 2018, the Indian retail sector is likely to grow at a CAGR of 13% to reach a size of
USD 950 billion. The Indian retail sector is set to grow rapidly with a gradual shift toward organized retailing formats. Organized retail penetration is expected to increase from 7.5% in
2013 to 10% in 2018 at a robust CAGR of 19-20% during the same period. This will be driven by a combination of demand, supply and regulatory factors, which are expected to be the growth engines of the Indian consumer and retail market.

Factors driving growth in the Indian Retail Industry:

• Regulatory Factors and Policies: Liberalization of FDI policies in retail coupled with the expected roll-out of the Goods and Service Tax
• Supply Side Factors: Rapid real estate and infrastructural development, easy availability of credit, innovative physical and online channels, increased service orientation
• Demand Side Factors: Rising disposable income, increasing urbanization, highly aware and affluent young population, growing number of working women and changing consumer preferences.

Source: Pulse of Indian Retail Market (Ernst & Young LLP)