According to the 8^th Annual Global Retail Development Index (GRDI), revealed by consulting firm AT Kearney, Indian retail market is most attractive. India had claimed the top position amongst 30 countries. Vietnam had toppled India for the top spot in 2008. The onset of economic slowdown changed the numbers. AT Kearney now feels that developing countries like India may lead the recovery of economy.

India has been ranked number one for retail investment four times for the last five years. Global retail giants like Wal-Mart, Carrefour, and Tesco are continuing to expand in the country. The GRDI helps retailers decide on their global development strategies. Retail attractiveness is ranked on a set of 25 variables like retail saturation levels, economic and political risk, and the difference in the growths of GDP and retail. 

Affordable housing and low inflation in some of the Indian cities pushed the score to 68. India is ahead of Russia (60), China (56), UAE (56), and Saudi Arabia (56). Slower retail sales in India are forcing the Indian retailers to defer plans of expansion and reorganise their operations. But, global retailers like Wal-Mart are continuing on their expansion plans as Indian consumers are growing familiar with the formats of global retail. 
 

Hana Ben-Shabat, a partner in AT Kearney, said that emerging markets have become more important for growth as developed markets are showing very slow signs of improvement. Retailers must develop a strategy that balances developed markets with emerging markets to manage risks globally.