India number 39 in preferred retail markets rankingApril 29th, 2009 - 5:49 pm ICT by IANS
New Delhi, April 29 (IANS) India as a retail market continues to be attractive to a lot of global players but the progression from expression of interest to the actual setting up of operations is slow, a survey conducted by a global real estate services firm indicates.
Indian currently stands 39 on the list of most-preferred international retail markets, while neighbour China is high up in the list at number six, according to the survey done by CB Richard Ellis. In the Asia Pacific region, while China and Japan take the first and second positions, India is placed at a distant 11.
“India has moved from the 44th position to the 39th position, which does not justify the size of our economy,” said CB Richard Ellis chairman and managing director Anshuman Magazine.
A host of factors have led to the potential of India’s retail market not being tapped to its fullest.
“This ranking is not only because FDI (foreign direct investment) in retail is not allowed but also due to relatively lower purchasing power, cost and availability of real estate,” said Magazine.
Inadequate infrastructure and supply chain management problems are some other issues hampering India’s chances in the global retail market.
The 2008 survey also showed that despite the global financial crisis, many retailers, especially cash-rich private companies, continued with expansion plans and increasing their international presence by an average 12 percent.
“The emerging markets have been the primary beneficiaries of recent retail expansion activity, with Middle Eastern, Asian and eastern Europe dominating the list of new retail openings,” CB Ellis said in a statement.
However, the company was optimistic about India’s chances.
“A market like India cannot be ignored too long and I am confident we would move up in this ranking and attract more international players to the country,” said Magazine.
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