India ranks 2nd in ease of doing business: GRDI

The Dollar Business Bureau

India has ranked second among 30 developing nations this year with regards to ease of doing business, a jump of 13 places from the last year, according to Global Retail Development Index. China topped the list.

An improvement in the growth of Gross Domestic Products (GDP) and enhanced clarity with regards to FDI (Foreign Direct Investment) regulations have supported India to reach a second rank, as per the 2016 Global Retail Development Index (GRDI) that measures the top 30 developing nations for investment in the retail sector.

"India's robust ranking shows that the increased optimism of international retailers in the country’s retail market and its huge growth potential," said Debashish Mukherjee, Partner,  A T Kearney and co-head, Consumer Industries & Retail Products Practice for India and Southeast Asia.

Retail sector in India has grown at a CAGR (compound annual growth rate) of 8.8 percent during 2013 and 2015, with yearly sales above $1 trillion, said the London-based business consultancy A T Kearney.

India has also become the fastest growing economy in the world. Besides this, a huge population and the easing of regulations for FDI in the retail sector have made the country more attractive market, GRDI said in the ranking.

However, there are various challenges too. “The country remains a complex and challenging market for international retailers, where understanding the dynamics at state level is vital," said Mukherjee.

"The bottlenecks in infrastructure such as complex regulations, labour laws, high rates of labour attrition, and restricted good quality retail space are still the areas of concern for retailers," he added.

Retail sector in India has also gained from the growth in e-commerce segment as consumers are opting for shopping online, the report said.