Submitted By:

Anurag Dua A0101906052

Bharat Bhatia A0101906070
India: A Nation on the move
As per 2005-06 statistics:
Largest Democracy in the World
Population 1.112 billion
GDP $ 4.042 trillion
GDP Growth 8.5%
GDP Per Capita $ 3700
Inflation 5.3%
Per capita income $ 534
ForEx reserve $ 133 billion
Exports $112 billion
Imports $ 188 billion
Indias GDP will exceed Italys in 2016, Frances in 2019,
Germanys in 2023 and Japans in 2032.
India will become the 3rd largest Economy in the world by
2032 according to BRIC Report.
Average real household disposable income Rs. 113744.
Map of Indias Income Class:
Highly Fragmented Retail Sector:
12 million retail outlets spread across India.
80% of these 12 million retail outlets are run
my small family businesses which use only
household labour.
India has one of the highest retail densities in
the world at 6%.
India ranks 1
st
in terms of emerging market
potential in retail and is deemed a Priority 1
market for international retail.

Comparative penetration of Organized
retail:
India has only 3% organized sector and
rest is unorganized sector.
India Retail Landscape:
0
100
200
300
400
500
1998 2002 2006 2010
Worth ($
billion)
Indian organized retail Journey
Total Retail Sales Pie:
Key drivers of Growth:
Economic growth: This has meant greater disposable
incomes for the booming Indian middle class, which
currently comprises 22% of the total population. This
figure is expected to increase to 32% by 2010.
Disposable incomes are expected to rise at an average of
8.5% p.a. till 2015.
Demographics: More than 50% of the population is less
than 25 years of age and strong growth is expected to
continue in this age bracket.
Urbanization: The Indian urban population is projected
to increase from 28% to 40% of the total population by
2020 and incomes are simultaneously expected to grow
in these segment.
Credit availability: Retail loans have doubled in the last
three years to reach USD 38.7 bn by 2005.





Growth in Organized Retail:
(all figures in US $ million)
Retail Space in India:
Gateway to India:
Challenges Ahead:
HR: The industry is facing a severe shortage of
talented professionals, especially at the middle-
management level. The retail industry is expected to
create 2 million jobs between now and 2010.
Supply Chain: Most Indian retail players are under
serious pressure to make their supply chains more
efficient in order to deliver the levels of quality and
service that consumers are demanding.
Frauds: Employee pilferage, shoplifting, vendor
frauds and inaccuracy in supervision costs the Indian
retail industry Rs 550-600 crores per year.