India’s brick and mortar retail sector will see a boost of 23 to 25 percent over the next fiscal year, reaching the revenue levels generated prior to the pandemic (5.7 lakh crore rupees ($78.35 billion)), according to a new study from credit ratings agency, Crisil.
This fiscal year, the sector slowed by 19 to 22 percent due to the pandemic, with its associated store closures and restricted footfalls. In the third quarter, according to Crisil’s study of 145 brick and mortar retailers, sales had recovered to 80 percent of pre-pandemic levels and are expected to be almost fully recovered by the end of the current quarter.
India imposed strict lockdowns in March of 2020 to combat the spreading coronavirus and has seen its economy transform over the past 12 months from one of the world’s fastest growing to one of the world’s fastest contracting, though recent months have brought some relief as infection rates drop and its 1.3 billion consumers started spending once again.
The rate of this recovery has varied among different segments, with food and grocery rebounding faster than discretionary spending categories, such as fashion.