Changing scenarios in retail trade in India

The retail industry is one of India’s most dynamic and fast paced industries. With several big players entering the market, India has emerged as the fifth most favoured destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, and is among the top 30 emerging markets for retail. However, India’s retail sector is highly fragmented being run mostly by unorganized retailers while organized retail is at its nascent stage.

Indian corporate bigwigs such as Tata, Godrej, Reliance, ITC, Bharti, Mahindra, Wadia Group and Raheja are already involved the retail sector, while global players such as Walmart, Costco Wholesale Corp, Tesco, Carrefour, Metro, GAP, JC Penney, H&M, Karstadt Quelle and Sears/Kmart are expanding their presence.

Multi-brand retail in India is largely an unorganized sector which is generally dominated by neighbourhood “kirana stores”. Political parties and traders are concerned that these stores would be affected by the entry of global retailers.

OP Khaitan & Co is a 40-lawyer law firm, based in New Delhi. Gautam Khaitan is the firm’s managing partner and Arihant Jain is a junior partner.