The Indian retail industry has presently emerged as one of the most dynamic and fast paced industries as several players have started to enter the market. It accounts for over 10 per cent of the country’s gross domestic product (GDP) and around eight per cent of the employment in India. The country is today the fifth largest global destination in the world for retail.
Several corporates have planned to exploit the opportunities in the Indian retail space, such as Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs. 1.8 trillion (US$ 29.41 billion) for the next three years for its petrochemicals, telecom and retail ventures
With the growth in the retail industry, the corresponding demand for real estate is also being created. Further, with the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for retail companies, both domestic and international.
Organised retail, which constituted seven per cent of total retail in 2011-12 is estimated to grow at a CAGR of 24 per cent and attain 10.2 per cent share of total retail by 2016-17, according to a study titled 'FDI in Retail: Advantage Farmers' conducted by an industrial body.
India has about one million online retailers - small and large - which sell their products through various e-commerce portals. Presently, these online retailers have started to use the medium of online mobile apps to increase their reach to the customers. Several e-commerce firms - Myntra, Flipkart, Jabong, etc., have launched their own mobile apps. Flipkart plans to use their US$ 1 billion funds raised to acquire companies in mobile applications.
The Government of India has taken several initiatives to boost the Indian retail sector. For instance, the Ministry of Labour, Government of India has recently signed a Memorandum of Understanding (MoU) with Flipkart to provide short-term training to its new employees through its skill development initiative.