The Indian retail and real estate industries have been growing phenomenally over the last few years. Thanks to booming Indian economy, both the industries are growing astronomically.

According to projections made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the Indian retail and real estate industries would further celebrate in 2008 as both the industries are well poised to score a year-on-year growth of 30-35% and 40-45% respectively over 2007, as per the news published by Indianinfoline.

The retail sector grew at the rate of 25-28% while the real estate sector inched up at 35-38% in 2007. The size of both organized and unorganized retail segments in 2007 was estimated at US$ 330 Billion. The retail industry is expected to swell up to US$ 365 Billion this year and might reach US$ 440 Billion by 2010.

The high growth in the Indian retail industry is possible due to the entry of leading organized industries of India. The industry has transformed from small, family-based shops to modern and organized retail format.

Sprawling shopping centers, multiplex-malls and huge complexes reflect the contemporary retail sector of India and food, entertainment and shopping - all present under one roof - has given a new shape to it. Consumers’ buying behavior and format of shopping has changed the concept of shopping in the country.

Several other factors that are playing a pivotal role in the growth of the Indian retail industry include - rise in the young working population, increase in expenditure on luxury items, rise in disposable income, rising working women population and low share of organized retailing.

The research report of RNCOS, “India Retail Sector Analysis (2006-2007)” counts several other reasons for explosive growth in the Indian retail market. Indian consumers are becoming increasingly knowledgeable and sophisticated about products. Also, the increasing media involvement is enabling the players to communicate with their target consumer effectively. Rise in personal income of people is creating an environment of competition in the market for products. Hence, now the companies have become more concerned about their marketing issues. They want to separate their products from others and convey their values to customers.

High growth in both retail and real estate industries has attracted the attention of investors. Foreign investors are investing very cautiously in the retail industry. They are giving preference to the joint ventures with local companies as these are well accustomed with the domestic market.

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