Indian retail sector likely to reach $1.2 trillion

Hyderabad: Driven by rapid urbanisation and rising disposable incomes, India's retail sector is projected to touch $1.2 trillion (nearly Rs 83 lakh crore) by 2021, a two-fold jump from $672 billion (about Rs 46.35 lakh crore) recorded in 2017.

"The Indian retail sector has metamorphosed significantly over the last few decades. Rapid urbanisation, digitization, rising disposal incomes, and lifestyle changes of particularly the middle-class has led to a major revolution in the retail sector," said a report on retail titled "TCCx: Redefining the Future of Retail Malls" released recently by Anarock Property Consultants.

Evolving rapidly from usual 'kirana shops' to large multi-format stores offering global experience to the e-commerce model that is highly technology-driven, the Indian retail sector has evolved. "The retail sector is expected to grow from $672 billion in 2017 to $1.2 trillion in 2021," it added.

Anuj Puri, Chairman, Anarock, pointed out that private equity players were looking to expand their retail portfolio in the country considering the growth potential the sector would offer.

"Sensing immense opportunity in the Indian retail sector, private equity investors pumped in excess of $1.9 billion funding between 2015 and Q12019 period with majority inflows originating from the US, followed by Singapore," he explained.

The sector also saw a number of platforms for retail being created. "The retail sector comprising over 21 per cent of the total $8.8 billion worth platforms created since 2015 in the entire real estate sector", the report said.

Creating more avenues for raising funds in today's cash-starved industry is a breather for the growing retail sector, it added. On the changing trends in the retail sector, the report said customer experience would play key role in attracting customers.

"Productivity, diversity and quality are no longer the only parameters that help satisfy customers in retail spaces, rather customer experience is the brand-new tool that helps entice new-age customers," it explained.