Delhi Leading the Retail Bandwagon
The Indian retail market will grow to $637 billion by 2015 and modern retail, which presently accounts for 4 per cent of the total market, is likely to increase its share to 22 per cent by 2010, said Dr Ashwani Kumar, Minister of State for Industry, Government of India, at Retail Symposium 2008 on “Making Delhi a Global Retail Destination”, organized by Confederation of Indian Industry, on Friday in New Delhi.
“Delhi is India’s largest consumer market with the highest concentration of households with an annual income of $110,000 and per capita income more than double the national average. Delhi is a destination for shopping across India besides its own consumption appetite. It is the principal business and commercial centre in northern India, well complemented by industrial areas in the National Capital Region,” Mr Kumar said.
With an economy size of Rs 1,18240 crore, Delhi is the largest market in the country. Delhi is the biggest consumption centre in north India. It distinguishes itself as super centre for trade. It has attained the status of major distribution centre by virtue of its geographical location and other historical factors, availability of infrastructure facilities etc., he said.
“A family in Delhi spends Rs 2.1 lakh per annum on an average, while it saves Rs 50,000. As people prosper further, the savings will further go up, which will result in bigger retail industry. As the benefit of economic liberalization spreads and more and more people rise above poverty line, retail activities will gain momentum,” Mr Kumar said. He praised entrepreneurs and government policies in facilitating the rise of modern trade. He underlined the employment opportunities that organized retail industry can create. The rise of services industry and working women will propel the retail industry in India. The minister highlighted the fact that India won’t be hard hit by the global slowdown as 95% of growth is driven by domestic consumption.
Mr Sanjay Verma, Executive Managing Director, South Asia, Cushman & Wakefield, called on retailers and developers to collaborate to make shopping experience hassle-free. He suggested that retailers should also work closely to come up with formats suitable for customers. “Despite slowdown, India will have big consumption opportunities. We have to think of ways to increase the size of the retail industry.
Mr Nilesh Ved, CEO, Apparel Group, called on Indian retailers and the government to learn from the experience of Dubai. He said India needs more retail space and the retailers need support from landlord and the government. Mr Ved observed that Indians have emerged more positive over the years.
Mr Pranay Sinha, Conference Chairman, Retail Symposium 2008, said Delhi has all the ingredients to become a world-class city. In view of Commonwealth Games, we need to transform the city. Retail industry can play a critical role in transforming the city which will benefit everyone. In view of changing economic climate, the government needs to look into archaic taxation and licensing laws and make them simpler.
Earlier, making the welcome remarks, Mr Ankur Bhatia, Past Chairman, CII Delhi State Council & Managing Director, Amadeus India Pvt Ltd, said after information technology, retail is going to be the next wave. Delhi and NCR is contributing significantly to the growth of the economy. The city has been a retailing hub since long and there is a good spread of wealth and opportunities. The presence of large number of students and tourists will further boost the retail industry in the city.
Eminent speakers who made the conference a success with their valuable inputs included Mr Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj, Mr Suresh Singaravelu, President - Retail Infrastructure, Reliance Retail Ltd, Mr Suman K Bery, Director General, National Council of Applied Economic Research, Mr Partha Datta Gupta, CEO, Barista Coffee Company, Mr William Bissell, Managing Director, Fab India, Mr Santosh Desai, Managing Director & CEO, Future Brands, Mr Shivinder Mohan Singh, Managing Director, Fortis Healthcare Ltd, Mr Samir Kuckreja, Managing Director & CEO, Nirulas, Mr Harminder P Sahni, Chief Operating Officer, Technopak Advisors, Mr Vipin Luthra, Managing Director, Ansal Colonisers Developers Ltd, Mr S Harishanker, Executive Director & National Head - Indirect Tax, KPMG, Mr Gibson Vedamani, CEO, Retailers Association of India, Mr Sunil Sachdev, V P - Market Head of India and Area for Merchant Services (American Express), Mr Tanaji Chakraborty, President - Knowledge Centre, Jones Lang LaSalle Meghraj
The Conference was attended by over 275 participants from all over India.
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