Organised retail in India may Double by 2021

Prelims level : Economy Mains level : Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
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  • According to a latest joint report by Deloitte and the Retailers Association of India (RAI), 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.
  • As Internet penetration increases in the country and more international retailers start operating in India, the share of organized 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.
  • 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.
  • 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 Rs. 33 trillion in 2008 to Rs. 330 trillion in 2028.
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