The contribution of retailing in

Indian economy
By Vasanthan P (22PMB164)
Introduction
Retailing in India is one of the pillars of its economy and accounts for about 10
percent of its GDP.
The Indian retail market is estimated to be worth $1.3 trillion as of 2022. India is
one of the fastest growing retail markets in the world, with 1.4 billion people.
India's retailing industry was essentially owner staffed small shops. In 2010,
larger format convenience stores and supermarkets accounted for about 4 percent
of the industry, and these were present only in large urban centers. India's retail
and logistics industry employs about 40 million Indians (3.3% of Indian
population)
Contribution of retailing:

● Economic growth

● Employment generation

● Customer satisfaction

● Supply chain efficiency

● Rural development
Economic growth

● Retailing contributes significantly to India's gross domestic

product (GDP). In 2022, the retail industry accounted for about
10% of India's GDP, making it one of the largest sectors in the
economy. The industry is also expected to grow at a CAGR of
10% over the next five years, further driving economic growth.
Employment generation

● Retailing is one of the largest employment generators in

India. The industry employs over 8% of the workforce,
providing jobs to millions of people across various levels,
from store managers and salespersons to delivery personnel
and customer service representatives.
Customer satisfaction

● Retailing plays a crucial role in meeting the needs and

aspirations of consumers. Retailers strive to provide a wide
assortment of products, competitive prices, and a seamless
shopping experience to enhance consumer satisfaction.
Supply chain efficiency

● Retailing acts as a bridge between producers and consumers,

ensuring the efficient flow of goods and services. Retailers
optimize supply chain management to ensure timely product
availability and minimize wastage.
Rural development

Retailing is extending its reach to rural areas, providing access to

essential products and services, generating employment
opportunities, and stimulating economic growth in rural regions.