Drivers of Retail Growth in India

DEMOGRAPHICS

1. 60 % of Indian population is less than 30 years of age
2. 6 metropolitan cities contributes 6% of Indian population , 14 % of Indian GDP & 60 % of shopping malls.
3. Urban population spends 2.5 times more than rural population.
4. Greater per capita income
5. Increase in disposable income of middle class household

• Growing at a pace of over 10% per annum over last decade
• Falling interest rates.
• Easier consumer credit

6.The Urban Consumer

• Getting exposed to international lifestyle
• Inclined to acquiring assets
• More discerning and demanding than ever
• No longer need-based shopping
• Shopping is a family experience
• Increasing tendency to spend
• Post Liberalization children coming of age
• 100 mn 17-21 year olds. Tend to spend freely.
• Greater levels of education

ECONOMIC STABILITY

• 8% annual growth.( service driven GDP growth)
• FER( foreign exchange reserve)= USB$140
• FDI = USB$8
• 20 % increase in export from last year..
• Private consumption is 68% of GDP( India is the highest nation in terms of private consumption).
• Second most favoured destination after china for FDI.
• Unemployment rate has decreased to 7.8% in 2006 as against 10.3% in 2003.
• 24% decrease in unemployment post liberalization.
• India ranked 1st in the A.T Kearney Global Retail Development Index.
  (Considering the Country risk, Market Attractiveness, Saturation & Time Pressure)

PWC India Retail Report for 2007