The Indian rural retail opportunity is currently estimated to be in excess of Rs. 1400 billion(1) (approximately US$34 billion).
The figure is likely to touch Rs. 1800 billion (approximately US$ 43 billion) in 2010 and go up to Rs. 2400 billion (approximately US$ 58 billion) by 2015, according to CII - YES BANK Study on the Rural Retail Sector released during the “Conference on Rural Retail: The Next Phase in Retailing” organized by Confederation of Indian Industry (CII-Northern Region).
Delivering the theme address at the Conference, Mr Somak Ghosh, President, Corporate Finance and Development Banking said, “India's rural markets are growing at double the rate of urban markets. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10 giving a tremendous push to the rural retail opportunity.”
The rural revolution is driven by rising purchasing power, changing consumption patterns, increased access to information and communication technology, improving infrastructure and increased government initiatives to boost the rural economy, he further added.
Sharing his perspective on the upcoming trends in Rural Retail as well as its contribution to the exchequer, Mr Tarun Sawhney, Conference Chairman & Corporate Vice President, Triveni Engineering & Industries Ltd, stated, “Organised retail presents the modern face of an international city."
"It not only strengthens linkages with smaller retailers, traders and manufacturers, it contributes to the exchequer of the state, in addition to serving as an interest for tourists."
"At present 85 % of the organised retailing takes place in India's urban areas. But the good thing is that the retail focus has already shifted to the rural areas. The Indian rural market with its vast size and demand base offers great opportunities to marketers."
"Technopak estimates that the size of the Indian retail market is at present around USD 300 billion with the rural-urban split in the ratio 55 – 45. The rural market consumes about 53% of FMCG, and 59% of durables in India.”
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