The organised retail sector in India is growing rapidly but remains relatively small, accounting for an estimated 13% of the retail market in 2019. Most retail is still unorganised, with over 15 million small mom-and-pop stores. However, organised retail is expected to grow at a 24.57% annual rate between 2015-2020, reaching 24% of the market by 2020. Foreign investment in retail is increasing and global brands are expanding in India, seeing potential for growth given India's large population and rising incomes. The government is undertaking initiatives to promote tourism and attract more foreign visitors through campaigns like "Incredible India".

10. Strong growth in the Indian retailing industry

12. ORGANISED RETAIL IN NASCENT STAGE
• Organised Retail Penetration (ORP) in India is low (8 per cent) in 2015
compared with that in other countries, such as the US (85 per cent).
This indicates strong growth potential for organised retail in India
• In 2019, it is estimated that organised retail penetration share would
reach 13 percent and unorganised retail penetration would hold a
major share of 87 percent.

13. • The Indian retail market is in its nascent stage; unorganised players
accounted for 92 per cent of the market during 2015
• There are over 15 million mom-and-pop stores
• Between FY15-20, organised retail in India is expected to witness a
CAGR of 24.57 per cent
• Organised retail is expected to account for 24 per cent of the overall
retail market by 2020

16. SIGNIFICANT GLOBAL POSITIONING OF
INDIAN RETAIL SECTOR
• India is among the highest in the world in terms of per capita retail store availability. India’s strong
growth fundamentals, along with increased urbanisation and consumerism, offer immense scope
for retail expansion for foreign players
• With the allowance of 100 per cent FDI in single brand retail investor sentiment will get further
push
• Rapid emergence of organised retail outlets, such as mega malls and hypermarkets, are
augmenting the growth of organised retail in the country. Retailers have made dynamic changes
in supply chain and logistics for competitive advantage and meeting consumer demands
• In June 2016, Amazon Inc. has announced to invest an additional USD3 billion in India operations,
thereby reaching investment to over US$ 5 billion
• In 2016, Amazon witnessed growth of 160 per cent in the seller base, over 2015, and attracted
1,40,000 sellers in India
• In May 2016, Aditya Birla Fashion and Retail Limited (ABFRL) announced to acquire exclusive
online and offline rights of Forever 21, an American fast fashion brand, in the Indian market.

17. • In October 2016, CapitaLand, a listed company in Singapore,
announced plans to open two more malls in India by the end of 2019.
• World's largest private equity manager, Blackstone Group, entered
India's retailing sector by setting up a fully owned subsidiary, Nexus
Malls. The new entity will own and manage shopping centres in the
country.
• Diageo, world’s largest spirits maker plans to open a new business
services centre in Bengaluru and give employment to 1,000 people,
by end of 2017
• British brand ‘Marks & Spencer’ (M&S) plans to open 10 new stores
annually, under its joint venture business with Reliance Retail in India.

28. FOREIGN ARRIVALS ARE RISING
• In 2015, foreign tourist arrival in India stood at over 8 million and
accounted for over 8.8 million in 2016(1)
• During the current calendar year, the country is expected to witness
footfall of nine million foreign tourists, thereby witnessing a growth of
around 12 per cent, from the eight million visitors last year.
• Foreign tourist arrivals into the country is forecast to increase at a CAGR of
7.1 per cent, during 2005–25
• By 2025, foreign tourist arrivals in India is expected to reach 15.3 million,
according to the World Tourism Organisation
• In December 2016, over 1,62,250 foreign tourists arrived on e-Tourist Visa,
in comparison with 103,617 foreign tourists in December 2015, registering
a growth of 56.6 per cent over the previous year

31. Government initiatives

35. Success story
• Incredible India is a marketing campaign launched by the Government of India in 2002 to
promote India as a tourist destination internationally
• Foreign tourist arrivals increased at a CAGR of 7.1 per cent during 2005-25E to 15.3
million by the end of 2025
• India currently attracts 0.63 per cent of tourists from world over; the government aims to
increase it to 1 per cent
• In 2012, India Tourism launched two new campaigns: Find What You Seek, an
international campaign; and Go Beyond, a domestic campaign
• In 2013, the Ministry of Tourism had welcomed the launch of a campaign ‘777 days of
the Indian Himalayas’ as a step to promote the Himalayan states as well as the gateway
cities which are entry points for domestic and international tourists
• In 2015, Ministry of Tourism has launched new TV advertisement campaign through
which four films have been made on the theme of ‘Adithi Devo Bhava’ which spreads
awareness that conveys on how to extend hospitality by adopting friendly attitude
towards tourists visiting India