Retail industry in India is at the crossroads. With several players entering the market, it has emerged as one of the most dynamic and fast paced industries. Accounting for over 10 per cent of the country's GDP and around eight per cent of the employment, retail is now India's one of the largest industries. However, break even is difficult to achieve because of the heavy initial investments requirement, and many of these players have not tasted success so far. Though, the future is promising for retail business India; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.

The gradual increase in disposable incomes of the middle and upper class household is the main reason for the boom in retail business in India. Countries like U.K, US and Japan have started out sourcing business activities and are willing to pay a handsome package to those who deserve. By 2020, the out sourcing will create 10-24 million jobs. The Indian youth is zealous, intelligent and willing to work harder.

The Indian consumer has a great amount of disposable income which has increased the gross demand level of the country. This demand is accompanied by the desire to get the best quality. In India, over 54% of the population is below 25 years of age and 65% is below 35 years. They have huge disposable income at their disposal to the spent on desires and dreams. Furthermore, there is a switch from joint family to nuclear family, which is making its presents felt. Indian business in retail sector is expanding at a rapid pace, driven by changing lifestyles, strong income growth and favorable demographic patterns.

India is ranked as the 4th most attractive FDI destination in 2010, according to Ernst and Young's 2010 European Attractiveness Survey. Recently Indian Government has allowed up to 51 percent FDI in single brand retailing by foreign companies like Reebok and Louis Vuiton. As of now, single brand retailers operate through the franchisee route and there is a strong view that FDI in this segment would not displace jobs or impact the local industry but help create employment.

Now, a number of foreign players, including the Wal-Mart stores, Inc., also have announced their intention to enter India business in a big way. At present Wal-Mart is operating through its subsidiary in Bangalore, which was functioning as a liaison office till last year. Now it is in the process of setting up offices in New Delhi and Mumbai.

Retail business in India is witnessing boom in terms of modern retailing formats, shopping malls etc.. the future of retailing for any product across the country will definitely be in malls where the consumer can get variety, quality, and ambience under a single roof.

As a whole, the favorable investment and economic climate in India is now conducive to both domestic and international players gaining ground in retail trade.

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