1. India Retails Industry is divided into Organised and Unorganised segments
Organised Segments
Retails Industries are refered to trading activities undertaken by licensed retails and they
have to be registered for Sales Tax , Income Tax etc.
These sectors includes the following
Corporate backed hypermarket
Retails chains
Also the privately owned large retail business.
Unorganised Retail Sector
Local Kirana shops, panbidi shops, owner manned general stores, convenience stores etc.
Indian Reatail sector is wearing new clothe and with three year compounded annual
growth rate of 46.44 %, retail is the fastestgrwoing sector in the Indian economy.
Traditionla markets are making way new formats such as departmental stores,
hypermarket, supermarkets and specialtity stores.
Western style mall have beun appearing in metros and second rung cities alike,
introducing the Indian consumer to an unparelled shopping experience.
The Indian retail sector is highly fragmented with 97 % of its business being run by the
unorganized retailers like the traditional family run business and corner stores.
The organized retail however is at a very nascent sr=tage through attempts are being
made to increase its proporation to 9-10 % by the year 2012 bringing in a huge
oppurtinity for prospective new players.
This sector is the largest source of empoloyment after agriculture and has deep
penetration into rural India generating more than 10% of India’s GDP.
The retails sales in India are hovering around 33-35 % of GDP as compared to around
20% in the U.S. The table gives the picture of indias retails trade as compared to the U.S
and China.
Trade(US$ Employment(%) Shops(million) Organised
Billion) sector share(%)
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.30 80
Source The Economist
The last few years witnessed immence growth by this sector, the key drivers being
changing consumer profile and demographics, increase in the number of international

2. brands available in the Indian market, economics implications of the government
increasing urbanization, credit availibilty, improvement in the infrastructure, increasing
the investments in technology and real estate building a world class shopping
environment for the consumers. Inorder to keep the pace with the increasing demand,
there has been a hectic activity in terms of International labels, expansion plans and focus
on technology, operations and process.