Strong macroeconomic factors coupled with robust demographics and Internet penetration will fuel the growth of the retail market in India, which is third largest in Asia and fourth-largest globally after U.S., China and Japan.
According to a latest joint report by Deloitte and the Retailers Association of India (RAI), as Internet penetration increases in the country and more international retailers start operating in India, the share of organised retail market would increase from about 12% in 2017 to about 22-25% by 2021, which would partly also be driven by the growth of e-commerce market from $24 billion in 2017 to $84 billion in 2021. The report pegs the growth in e-commerce market to factors like growing Internet penetration and increased usage of smartphones among others.
M-commerce sales
“The number of online shoppers would increase from the current 15% of the online population to 50% by 2026,” stated the report while adding that smartphone users are expected to increase from 260 million in 2016 to around 450 million by 2021 that is also likely to drive the m-commerce sales from $10.5 billion in 2016 to $38 billion in 2020.
The retail market is expected to grow from $795 billion in 2017 to $1.2 trillion by 2021, as per the report.
Meanwhile, a joint report by RAI and the Boston Consulting Group (BCG) highlighted the fact that India’s consumption has been growing at a steady pace of 13% over the last decade to ₹110 trillion in 2018, accounting for 59.3% share of GDP of India, higher than the emerging market average.
“India’s consumption has grown at 13% in the last decade and is likely to continue to grow at 12% over the next 10 years — from ₹33 trillion in 2008 to ₹330 trillion in 2028. But the drivers of the future are going to be different than in the past,” said Abheek Singhi, senior partner and Asia-Pacific lead, consumer practice, BCG India.
Published - February 26, 2019 10:13 pm IST
