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IMPACT OF RETAILING ON INDIAN ECONOMY

   

Added on  2022-03-17

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FINAL PROJECT WORK ON
“IMPACT OF RETAILING ON INDIAN
ECONOMY”

THE PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

IN PARTIAL FULFILLMENT OF THE
REQUIREMENT

FOR THE AWARD OF DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)

BY

BOBADE ASHISH SURESH RAJSHREE

PARLE TILAK VIDYALAYA ASSOCIATION’S

PTVA’S INSTITUTE OF MANAGEMENT

VILE PARLE (E), MUMBAI 400 057.

2015-2017
IMPACT OF RETAILING ON INDIAN ECONOMY_1
CERTIFICATE
I Mr. Abhishek Deokule hereby certify that Mr. Ashish
Bobade, MMS Student of Parle Tilak Vidyalaya Association’s
PTVA’s Institute of Management, has completed a project
titled ‘Impact of Retailing on Indian Economy’ in the
Academic Year 2016. The work of the student is original and the
information included in the project is true to the best of my
knowledge.

Mr. Abhishek Deokule Dr. Harish Kumar S. Purohit

Assistant Professor Director
IMPACT OF RETAILING ON INDIAN ECONOMY_2
DECLARATION
I, Mr. Ashish Bobade MMS Student of Parle Tilak Vidyalaya
Association’s PTVA’s Institute of Management, hereby
declare that I have completed the project titled ‘Impact of
Retailing on Indian Economy during the Academic Year
2016-17.

The report work is original and the information/data and the
references included in the report are true to the best of my
knowledge. Due credit is extended on the work of
Literature/Secondary Survey by endorsing it in the Bibliography
as per the prescribed format.

(Signature)

Ashish Bobade
IMPACT OF RETAILING ON INDIAN ECONOMY_3
INDEX
Sr. No.
Particulars Page No.
1.
Introduction 1
2.
Executive Summary 4
3.
Sector overview 5
4.
Indian Retail Industry: Summary 6
5.
Market Size 7
6.
Investment Scenario 10
7.
Government Initiatives 14
8.
Road Ahead 16
9.
E commerce: Summary 18
10.
Indian Retail Industry to Indian Economy 22
11.
Retail: World Largest Industry 26
12.
Suggestions 29
13.
Conclusion 31
14.
Bibliography 32
IMPACT OF RETAILING ON INDIAN ECONOMY_4
INTRODUCTION
The Indian retail industry has emerged as one of the most
dynamic and fast-paced industries due to the entry of several
new players. It accounts for over 10 per cent of the country’s
Gross Domestic Product (GDP) and around 8 per cent of the
employment. India is the world’s fifth-largest global destination in
the retail space. Thanks to the entry of corporate, gradual
increase the limit of
Foreign Direct Investment (FDI) in retail
sector, increasing influence of western culture and rising income,
changing customer behaviour & lifestyle, the Indian retail
industry has seen phenomenal growth in the last few years.
Retail, one of India's largest industries, has presently emerged
as one of the most dynamic and fast growing industries of our
times with several players continuously entering the retail market
in India and investing in developing the infrastructure and
construction of the retailing business.

Retail industry can be classified into two broad categories
organized retail and unorganized retail.

Organized retail - Those traders/retailers who are licensed for
trading activities and registered to pay taxes to the government

Unorganized retail It consists of unauthorized small shops -
conventional Kirana shops, general stores, corner shops among
various other small retail outlets - but remain to be the radiating
force of Indian retail industry.

Overview

Retail industry, being the fifth largest in the world, is one of the
sunrise sectors with huge growth potential and accounts for 14-
15% of the country’s GDP. Comprising of organized and
IMPACT OF RETAILING ON INDIAN ECONOMY_5
unorganized sectors, Indian retail industry is one of the fastest
growing industries in India, especially over the last few years.

According to the Global Retail Development Index 2012, India
ranks fifth among the top 30 emerging markets for retail. The
recent announcement by the Indian government with Foreign
Direct Investment (FDI) in retail, especially allowing 100% FDI in
single brands and multi-brand FDI has created positive
sentiments in the retail sector.

Emerging Areas

Some sectors that occupy a prominent position with the retail
industry are:

Apparel and fashion Everybody understands the impact of
fashion and textiles on the environment. Almost $19.5 billion
were spent on online apparel shopping in the year 2009 and
increasing since then.

Fashion & Lifestyle - In India the vast middle class and its
almost untapped retail industry are the key attractive forces for
global retail giants wanting to enter into newer markets, which in
turn will help the retail to grow faster.

Food & Beverage retail - Backed by huge potential and
changing lifestyles, the food and beverage retail market is
growing at a robust 30-35 per cent per year.
IMPACT OF RETAILING ON INDIAN ECONOMY_6
Pharmaceutical Retail Driven by therapies like anti-diabetic,
vitamin, anti-infective and dermatology, it accounted for a robust
15% growth in 2011.

E-commerce or E-tailing the next big revolution - With the
advent of e-commerce in the retail industry, retail stores are
facing stiff competition from e-stores. The rising demand for e-
shopping has lead to a new debate cropping up in the world.
IMPACT OF RETAILING ON INDIAN ECONOMY_7
EXECUTIVE SUMMARY
This study attempts to find out the effect of retailing development
on Indian economy and new trends that contributes to the growth
to the Indian economy in terms of following factors:

Shift in the Indian Shopping Landscape.

Changing lifestyle and buying behaviour of consumer.

Growth of organised sector ad new technology in Retail
sector.

E-Commerce developments.

Investment policies to support growth of Indian Retail
sector.

Global opportunities for Indian retail sector.

It is observed from various reports on retail that “Retail in India
is at the crossroads. It has emerged as one of the most dynamic
and fast paced industries with several players entering the
market. That said, the heavy initial investments required make
break even hard to achieve and many players have not tasted
success to date. However, the future is promising; the market is
growing, government policies are becoming more favourable
and emerging technologies are facilitating operations.

Thus, this report identifies and investigates the findings from
these discussions to understand how Indian retailers are gearing
themselves to drive profitable growth in the digital age and
developing the Indian economy
IMPACT OF RETAILING ON INDIAN ECONOMY_8

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