Owing to its large population and rising disposable incomes, India continues to be an attractive long-term retail destination, says the Economic Survey 2014-15.
Citing AT Kearney’s Global Retail Development Index (GRDI), the government document said India’s retail trade ranking slipped further to twentieth in 2014 from fourteenth in 2013. “The retail sector was affected in 2013 by high consumer price inflation, currency fluctuations, and strict FDI policies,” it said.
“However, India remains an attractive long-term retail destination for several reasons, including its large population, 58.3 per cent of which is below 30 years and 31.1 per cent of which lives in urban areas with rising disposable incomes,” states the Economic Survey 2014-15, tabled in Parliament by finance minister Arun Jaitley, a day before the general Budget was presented.
According to the survey, although migration from traditional stores to modern retail is continuing, the latter accounts for only 8 per cent of the total market.
The survey expects India’s ecommerce market to grow by more than 50 per cent in the next five years. However, it points out inventory management, logistics planning, and resource availability as important hurdles for online retail in India.
Stating that consumer safeguard is another area of concerns for ecommerce consumers, the survey says the government proposes including sufficient provisions in the ongoing amendment to the Consumer Protection Act 1986.
