With the collective economic interaction of growing per
capita disposable incomes, fast-growing manufacturing and
organized retailing sectors, increasing external merchandise
trade, infrastructure investments by the government and
Third Party Logistics (3PL) capex plans, both India's logistics
industry and the 3PL sector of this market are set to witness
explosive growth in the next five years.
India has been one of the largest economies in the world,
which has been growing in leaps and bounds over the past
decade. The future of Indian industry is expected to scale
better heights and the day is not far when India will become
the fastest growing economy in the world.Retail industry is one of the prominent industries in India,
contributing around 10% to the country's Gross Domestic
Product (GDP) and 8% to its employment, which is expected
to be $17 bn by 2010. The burgeoning growth of the retail
sector is necessitating a need for efficient logistics operations.
Retailing scenario in India is undergoing a dynamic revolution.
The changing demographics and improving quality lifestyle
of people is catalyzing the growth of retail sector. India's
economy, which is in a high growth trajectory with GDP growing
over 9% along with liberalization of the economy and growing
consumerism is giving a good thrust to the retail industry.
According to AT Kearney's Global Retail Development Index
(GRDI), India has also emerged as the most lucrative destination
for retailers all over the world. Presently, the retail industry in India is worth $16 bn
of which the organized retail sector accounts for only 25%.
The organized retail sector in India has been predicted
to rise from $4 bn to $22 bn mark by 2010 as reported by
Assocham, an industry organization. The major chunk of retailing
in India is done by the unorganized sector. For instance,
of the 12 million retail outlets, approximately around 80%
are family businesses that survive on household labor.
|
