According to a study by the McKinsey Global Institute (MGI) called 'Bird of Gold': The Rise of India's Consumer Market, total consumption in India is likely to quadruple by 2025, making India the fifth-largest consumer market in the world by 2025.

According to the same report, urban India will account for over two-thirds of market growth by 2025, despite housing only 37 per cent of the country’s population.

Retail

The BMI India Retail Report for the third-quarter of 2010released in May 2010 forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014.

Moreover, for the fourth time in five years, India has been ranked as the most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its eighth annual Global Retail Development Index (GRDI) 2009 published in June 2009.

Furthermore, according to global real estate consultant, CB Richard Ellis, India ranked as the 39th most preferred retail destination in the list of the top 280 global retailers as a preferred destination to establish operations in 2009, up from 44 in 2008.

Cumulative foreign direct investment (FDI) inflows in single-brand retail trading between April 2000 to March 2010 stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion (DIPP).

In order to tap the growing opportunity in the organised retail market, Aditya Birla Retail plans to invest up to US$ 44.34 million in 2010-11 to expand its 'More' brand. The group will open 100 new supermarkets of 'More' and 8-10 new hypermarkets by March 2011 under the More Megastore brand.

K Raheja Group promoted Shopper's Stop has lined-up a capital expenditure (capex) of about US$ 27.57 million to open about 12 stores in 2010-11. The new stores will be opened in Bengaluru, Delhi, Pune, Bhopal, Aurangabad, Vijaywada and Durgapur.

Further international chains such as Carrefour and Wal-Mart are increasingly looking at India. Wal-Mart Stores Inc, the world's biggest retailer, will accelerate its rollout of wholesale stores in India. Raj Jain, chief of Indian operations for Arkansas-based Wal-Mart, said the firm now expects to open 10-12 wholesale centres in India over two-to-three years, from an earlier target of five years, as real estate prices have become more attractive.

Moreover, leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50 premium watch outlets Helios in next five years to attain a sales target of US$ 87.31 million.