India is now Number 2 in ease of doing business index

Among 30 developing countries, India now ranks at Number 2 position in ease of doing business index.

As per a study, ‘2016 Global Retail Development Index (GRDI)’, which ranks top 30 developing countries for retail investment worldwide, India jumped 13 places up at number two post.

The study, which is topped by China, also took GDP growth and better clarity regarding FDI regulations into considerations and these 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. 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," said Debashish Mukherjee, a partner with A T Kearney and co-head of the Consumer Industries & Retail Products Practice for India and Southeast Asia.

According to A T Kearney, a London-based business consultancy, 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.

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.

"We expect to see e-commerce to propel India's growth and make it a more attractive proposition. However, there are some challenges as well. India remains a challenging and complex market for foreign retailers, where understanding dynamics at the state level is important," Mukherjee said.

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