As per a report in Economic times India has fallen to 14th position as the most attractive destination for global retailers, underperforming smaller markets such as Turkey, Kazakhstan and Armenia. According to AT Kearney's Global Retail Development Index (GRDI), which ranks 30 emerging countries based on a set of 25 variables including economic and political risk and market attractiveness and saturation levels, India fell nine positions from last year when it ranked fifth. In fact, the Indian market was the most attractive destination five years ago and had consistently occupied one of the top five slots in the last decade. This is despite the government allowing 100% FDI in single brand for the first time.
India's GDP growth rate slipped to 5%, down from a 10-year average of 7.8%. Same-store sales volume growth slowed in 2012 across retail, particularly for lifestyle and value-based formats.
Still, several single-branded retailers have entered India in many sectors: apparel and beauty (including Brooks Brothers, Kenneth Cole, Sephora, and Armani Junior), standalone boutiques (including Roberto Cavalli and Christian Louboutin), and food (including Starbucks and Dunkin' Donuts). Large retailers such as IKEA too are finalizing their India entry strategies.