East India Emerges as Epicenter of Modern Retail Activity

As compared to other regions, East India with states like West Bengal, Bihar, Jharkhand, Odisha and the Northeastern states of Assam, Arunachal, Tripura and Mizoram, has been a late bloomer. However, growing consumerism and spending power is driving brands and retailers to shift focus from mature markets to these emerging cities…

- Piasi Sinha

While India’s long term growth outlook remains intact, there is no denying the ongoing volatility in the market at this time. Across the industry sectors, 2019 has been a year of uncertainty and vulnerability due to the rise of technology, new formats and changing customer preferences and buying patterns. However, the proactive approach of the government and reforms rolled out in recent times has set India in the growth trajectory in the long term.

Over the last decade, India has attracted global investment and moved up its ranking in terms of ‘ease of doing business’. Allowing foreign investment up to 100 percent in retail, GST reforms, a booming e-commerce sector and the development of retail real estate have unfolded a new era for organised retail.

Today, India is the world’s fifth-largest global destination in the retail space. The retail market in India is projected to reach $1.375 trillion, while the Indian e-commerce industry is expected to cross the $ 200 billion mark by 2026.

The e-commerce market in India is also set to grow at a CAGR of 30 percent for gross merchandise value to reach $200 billion by 2026, with a market penetration of 12 percent compared to 2 percent currently(Source: investindia.gov.in). With increased domestic demand, India’s retail sector investments doubled to reach `1,300 crores (US$ 180.18 million) in 2018. According to reports total consumption expenditure is expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017.

The Rising East