The Indian retail business is one of the fastest expanding in the world and is expected to reach USD 2 trillion by 2032, according to Reliance Retail Director Subramaniam V.
According to him, the Indian retail industry is expected to be worth USD 844 billion in 2022, with the unorganised retail sector accounting for almost 87 per cent of the total.
The retail sector is expected to increase at a 10 per cent annual rate to reach USD 2 trillion by 2032, making it the world’s fastest growing retail market, as per Subramaniam, who spoke at an event hosted by industry organisation FICCI.
Subramaniam described the unorganised retail market as severely fragmented and lacking contemporary facilities and technology due to lower volume and financial resources.
There is a need to create an operating environment that encourages inclusive and sustainable growth for the sector, and government policies and business practices of the major players must support inclusive growth for the unorganised players’ small players, he said.
According to him, there is a need to create a sourcing ecosystem that assists small producers and manufacturers (SMEs) in modernising their operations in order to generate high-quality products.
Moreover, investments are necessary to enhance India’s supply-chain infrastructure by connecting all main sourcing areas via a scalable storage and logistics ecosystem, in order to cut sourcing time and aid in the speedier flow of goods, je said.
The industry is on the “cusp” of experiencing innovation in both physical and e-commerce through the application of cutting-edge technology such as Artificial Intelligence and Machine Learning, he stated.
Subramaniam highlighted the retail industry’s issues, such as licensing, stating that 10 to 70 licences are now necessary to start one retail store and suggesting legislative involvement in this area.
Instead of several licences, he proposed that the state government provide a “one licence” to a commercial organisation.
