SINGAPORE: India has jumped 13 positions from last year to rank second among 30 developing countries this year on ease of doing business, according to consultancy firm AT Kearney.
The 2016 Global Retail Development Index (GRDI), which ranks top 30 developing countries for retail investment worldwide, said a pick-up in GDP growth and better clarity regarding foreign direct investment (FDI) regulations have helped India improve its ranking.
“India’s strong ranking reflects foreigner retailers’ increased optimism in its retail market and its vast growth potential,” said Debashish Mukherjee, a partner with AT Kearney and co-head of the consumer industries and retail products practice for India and Southeast Asia. “India has relaxed several key FDI regulations in single-brand retail and this has paved the way for multinational firms to enter the market.”
India’s retail sector has expanded at a annual growth rate of 8.8% between 2013 and 2015, with annual sales crossing the $1 trillion (`67 lakh crore) mark, according to AT Kearney.
“We expect to see e-commerce propel India’s growth and make it a more attractive proposition. However, India remains a challenging and complex market for foreign retailers, where understanding dynamics at the state level is important,” Mukherjee said.