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 a study topped by China.
According to 2016 Global Retail Development Index (GRDI), which ranks top 30 developing countries for retail investment worldwide, a pick up in GDP growth and better clarity regarding FDI regulations have helped india achieve a second 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 A T Kearney and co-head of the Consumer Industries & Retail Products Practice for India and Southeast Asia.
“India has relaxed several key Foreign Direct Investment (FDI) regulations in single-brand retail and this has paved the way for multinational firms to enter the market,” Mukherjee said.
India’s retail sector has expanded at a compound annual growth rate of 8.8 per cent between 2013 and 2015, with annual sales crossing the USD 1 trillion mark, according to A T Kearney, a London-based business consultancy. India has also become the world’s fastest growing economy.
That coupled with a large population base and the easing of FDI regulations in the sector has made it an even more attractive market, it said in the ranking.