Overtaking China, India is now the most dynamic market with a rapidly expanding economy and a consumption boom, says a recent AT Kearney's Global Retail Development Index. Malaysia, Turkey and UAE take the third, fourth and fifth position in the 2017 Global Retail Development Index, respectively. In India, the conditions for retailers in India are favourable and will continue to provide strong fundamentals. The GDP is forecast to grow 7.6% in 2018, helping the organised retail to double in size by 2020.
Relaxed rules for foreign direct investment (FDI) in key sectors have improved the ease of doing business in India, says 2017 Global Retail Development Index report by AT Kearney. Government efforts to boost cashless payments (witnessed in the recent nationwide demonetisation exercise) and reform indirect taxation with a nationwide goods and services tax (GST) are also expected to accelerate adoption of modern retail.
Online retail is projected to grow 30% annually and reach $48 billion by 2020, driven by high promotional activity and payment solutions such as cash on delivery. Lifestyle products such as apparel and shoes are among the most popular online categories. However, maintaining a profitable online operation is a challenge, and has led to some consolidation.
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