India's retail market

The BBC has a report, "Countdown to India's retail revolution", that points out that India now has 70 million people who have incomes above $18,000 annually. That's a pretty substantial middle class -- almost as big as Germany (80 million), and bigger than France, Italy, or UK (each about 60 million). The BBC predicts that the number will reach 140 million in five years and notes, "Many of these people are looking for more choice in where to spend their new-found wealth."

We mentioned last month that India has recently made some small openings in their retail market, and that more are anticipated (Wal-Mart, which is still blocked, has opened an office there to be ready when it happens).

"The recent move was just the first step," says Dr Mohan Kaul, chairman of the Commonwealth Business Council.

"Maybe this time next year there will be a further announcement.

"It's inevitable, there is no way that an open market for retailing will be stopped."

I think it's inevitable too, but he seems a bit optimistic -- I can't see it happening as long as the Communist Party is a part of the government coalition.