The story may have been different if the Indian government had allowed foreign direct investment (FDI) in multi-brand retail. For now, India ranks fifth in the Global Retail Development Index (GRDI) released by AT Kearney’s Global Consumer Institute. The country slipped one notch, while China moved up to occupy the third position. GRDI ranks the top 30 developing countries for global retail expansion. At number five, India remains a high-potential market with a growth rate of 15-20% expected over the next five years in view of rising disposable incomes and rapid urbanization. Brazil continues to be No.1 for the second year in a row. The country’s relatively young population and high per capita spending in the apparel and luxury sectors make it the top destination for specialty retailers. While the BRIC countries—Brazil, Russia, India, and China—still tempt global retailers, several smaller, untapped markets such as Oman, Azerbaijan, Mongolia and Georgia are providing new growth opportunities. The index analysed 25 macroeconomic and retail specific variables to arrive at the scorecard.
Graphic by Sandeep Bhatnagar/Mint
Also See | Retail Ranking (PDF)