Retail Market of India to Witness a Rise Up To $1.1 Trillion by 2020

Posted on: Nov-2017 | By: QY Market Research | Service

As per the study of MRRSIndia.com and Assocham, Indian retail market is expected to touch the mark of $1.1 Trillion by 2020. It presently is valued at $680 Billion.

The retail sector that majorly relies on the FMCG market in India is rapidly growing and is projected to touch the range of 20–21% growth per annum.

The reach of the digital connectivity and e-commerce aren’t just restricted to the urban regions, there is growing a penetration of these service in the rural areas as well. People living in rural regions are now aware of the digital services such as debit and credit cards, online banking service, and smartphones, and are readily adopting the techniques of online shopping.

The structure of demand has been drastically evolved and Indian consumers are rapidly adopting the new technologies of procurement. The demand factor of the retail sector majorly depends on the rise in the number of smaller towns entering utilization bandwagon, rising income middle class, the speedy emergence of online retail platforms, and accessibility of internet connectivity with the support of digital media.

Thus to keep the momentum on rising node, it is necessary to decode and analyze the consumption methods for the companies. It will also help the manufacturers to renovate or modify their products and start with new capabilities to grab the lucrative opportunities in this world.

It is also necessary for the FMCG companies and retailers to function in synergy to accomplish a better market growth and position as well. GST regime has left a severe impact on FMCG companies and retailers. Retailers are expecting to cut down product prices.

Indian retail market is presently undergoing a drastic transformation, as the majority of the manufacturers are shifting their focus on developing their online platform. Thus growing inclination of online purchasing is motivating the growth of the Retail market. Growing investment of foreign players has also motivated the growth figures of the market.

However, recently the government reduced the GST of approximately 100 products that were under 18% and were bought at 12% slab. This will also help to spur the growth of the global market.