An Overview of Retail Industry in India: Its Growth, Challenges and Opportunities

20 Pages Posted: 29 Jan 2011

See all articles by Satyajit Roy

Satyajit Roy

affiliation not provided to SSRN

Date Written: January 29, 2011


The Indian retail sector is witnessing tremendous growth with the changing demographics and an improvement in the quality of life of urban people. The growing affluence of India’s consuming class, the emergence of retail entrepreneurs and a variety of imported products particularly in the food and grocery segment, has been one of the main drivers for the current retail boom in the domestic market.

Retailing is defined as a definite set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. Retail is India’s largest industry, accounting for over 10% of the country’s GDP and around eight per cent of the employment. The scenario has changed after the LPG revolution. In late 90’s, government of India tried to create the bubble by allowing the Global players in the Retail Arena. The Government allows 100 per cent foreign direct investment (FDI) in cash and carry through the automatic route and 51 per cent in single brand.

Retail is amongst the fastest growing sectors in the country. India ranks 1st, ahead of Russia, in terms of emerging markets potential in retail and is deemed a 'Priority 1' market for international retail

This paper provides detailed information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socio-economic classes in India and how the urban and semi-urban retail markets are witnessing significant growth.

The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future.

Keywords: Brief Overview of Retail Industry, Growth in Retail Industry, Various Formats of Retail Industry, Strength Challenges and opportunities of Retail Industry, Future of the Retail Industry

Suggested Citation

Roy, Satyajit, An Overview of Retail Industry in India: Its Growth, Challenges and Opportunities (January 29, 2011). Available at SSRN: or

Satyajit Roy (Contact Author)

affiliation not provided to SSRN

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