India, most attractive retail mart

   Rediff Reports:
   Improved investment climate and a more liberal foreign direct investment regime have made India the top destination for global retail giants like Wal-Mart, Benetton and Tesco, which are looking to expand overseas, international management consulting firm A T Kearney said on Friday.

   India displaced Russia to move from second place to first in the 2005 Global Retail Development Index released by AT Kearney. The Index is a study of retail investment attractiveness among 30 emerging markets across the globe.

   The country's retail market totalling $330 billion is vastly underserved and has grown by 10 per cent on average over the past five years. It is also one of the most fragmented retail markets in the world -- the combined market share of the top five retailers totals less than two per cent.

   India's ranking was driven by an improved investment climate due to the recent relaxation of direct ownership restrictions on foreign retailers, it said.

   "The message for retailers on India is clear: move now or forego prime locations and market positions that will become saturated quickly," A T Kearney vice president Mike Moriarty said, adding retailers that missed opportunities to capture first-mover advantage in China can make up for it in India.
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