New Delhi, Jul 1 (KNN) India's retail sector is experiencing a significant boost in investor confidence, with funding increasing by 32 per cent to USD 1.63 billion in the first half of 2024.

The retail sector has witnessed a remarkable increase in funding, rising from USD 1.23 billion in H1 2023 to USD 1.63 billion in H1 2024. This surge reflects growing investor confidence in India's consumer market potential. 

Simultaneously, India's household consumption has shown impressive growth, nearly doubling in the past decade to reach USD 2.1 trillion last year, with a robust 7.2 per cent annual compound growth rate.

Looking ahead, economic projections paint an optimistic picture for India. The country's GDP is expected to reach USD 8 trillion by FY32, with consumption maintaining its significant role at around 60 per cent of GDP. 

The first half of 2024 has already seen notable investment activity in the retail sector. Eight funding rounds surpassing USD 100 million occurred during this period, highlighting strong investor interest. 

These included high-profile investments such as Flipkart's USD 350 million Series J round and Meesho's USD 275 million Series F round, demonstrating continued confidence in India's e-commerce and retail platforms.

Consumer spending patterns in India have also shown significant shifts. The Monthly Per Capita Consumption Expenditure (MPCE) has increased substantially, with rural spending rising by 164 per cent and urban spending by 146 per cent since 2011-12 at current prices. 

Experts attribute this growth to India's sustained economic performance and shifting consumer behaviour. However, investors are now focusing on more conventional businesses with sustainable models, learning from past failures in the consumer-tech space.

As India's retail landscape evolves, the sector is expected to remain at the forefront of investor interest in 2024 and beyond, driven by the country's expanding economy and rising consumption.

(KNN Bureau)