• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:06:26 AM IST | Friday, Feb 03, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Politics, Plan and Policy > Retail sector investments double to Rs 1,300 crore in 2018
Politics, Plan and Policy
Retail sector investments double to Rs 1,300 crore in 2018
Sangeetha G.
By  
  , Published : Jan 24, 2019, 3:00 am IST | Updated : Jan 24, 2019, 3:00 am IST

Retail sector investments double to Rs 1,300 crore in 2018
Retail sector investments double to Rs 1,300 crore in 2018

Investments in the retail sector doubled in 2018 to Rs 1300 crore as the sector received Rs 5500 crore investments in the past four years. Entry and expansion of global players and developmental activities in tier II and III cities will see organized retail growing to $209 billion by 2020, finds Anarock Retail.

In 2018, development of retail real estate grew to Rs 1300 crore from Rs 600 crore in the previous year. However, in 2016, the sector had attracted investment of Rs 3100 crore. “With a new regulatory environment being created plus further easing of FDI policies, investments poured in to the tune of Rs 1,300 crore in 2018,” found Anarock.

The increased investment will see addition of around 39 million sq. ft. of organized retail space between 2019 and 2022. Out of this supply, about 71 per cent will be developed in metros and tier 1 cities and the remaining 29 per cent will be in tier 2 and 3 cities like Ahmedabad, Bhuba?neshwar, Ranchi, Kochi, Lucknow, Surat and Amritsar. Development of in tier II and III cities will one of the main triggers for the rapid growth of organized retail in the next three years.

According to Anarock, organized retail valued $60.48 billion or 9 per cent of the total retail market valued $672 billion in 2017 is expected to touch $209 billion by 2020,at a CAGR of 20 to 25 per cent. By then, retail market would have grown to $1.1 trillion.

“There is significant untapped potential in cities like Ahmedabad, Bhubaneshwar, Chandigarh, Coimbatore, Indore, Jaipur, Lucknow, Kochi, Nagpur, Vadodara among others. In fact, present-day customer here is demanding, more aware, has higher disposable income and is a globe-trotter, which necessitates a revolutionary change in the retail segment. As per industry estimates, the market size of tier II and tier III cities is expected to grow from the current $5.7 billion to $80 billion by 2026,” said Anuj Kejriwal, MD and CEO of Anarock Retail.

Further, global players are eyeing a share of Indian retail pie. With liberalization in FDI policies, global retailers are significantly interested in cashing in on the increasing consumer demand in India. The total consumption expenditure in India is estimated to rise to $3,600 billion by 2020 from $ 1,824 billion in 2017, as per various reports. New players are either setting shop or old ones are rapidly expanding their base in newer areas of large cities or penetrating deeper into tier II and III cities.

The increased availability of mall space, which is currently in the pipeline, also will help the growth of organized retail.

Further, organized retail in India is underpenetrated with only 9 per cent share of the total market. India has a long way to go in order to catch up with markets like the US with 85 per cent organized market, UK with 80 per cent, Malaysia 55 per cent and even Thailand with 40 per cent. There is a huge latent potential that remains to be explored by organised players.

“The most recent policy developments will give physical organized retail a leg up in its fierce battle with e-commerce. The Government is pushing a new e-commerce policy from February 2019 wherein the concept of ‘exclusivity’ will no longer hold good. This means that online retail players will scramble to grab a larger pie of the offline market, so physical stores will get the upper hand,” said Kejriwal.

end-of
Location: 
India, Tamil Nadu, Chennai (Madras)
Latest From Politics, Plan and Policy
As per the finance ministry, Finance Minister Nirmala Sitharaman will meet stakehokder groups of 'New Economy: Start-ups, Fintech and Digital Sector' on Monday morning, and financial sector and capital market representatives later in the day. (Photo: File | ANI)

FM Sitharaman to hold pre-Budget meetings with stakeholders beginning today

Brent crude futures were up 19 cents, or 0.3 per cent, at USD 62.47 a barrel.

Oil rises amid optimism over OPEC supply cuts, hopes on US-China trade

Traders are now eyeing next month’s meeting between the OPEC and Russia to determine if the group would deepen output cuts to prop up prices. (Photo: Twitter)

Oil slips as US-China trade deal hopes dwindle

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham