CONSEQUENCES OF COVID-19 ON RETAIL SECTOR IN INDIA

Abstract

The retail sector in India is 5th largest global destination and most dynamic fast-growing sectors the retail sector brings together the consumer, distributors and manufacturers along with other segments like transportation, logistics and other chains. It being one of the pillars in Indian economy the retail sector contributed nearly 40% to India’s consumption and close to 10% of India’s GDP early 2020. There was a severe impact on retail sector due to covid-19 as the government announced quarantine and restricted physical service in the stores. At this situation government took a decision to sell the essential goods and services though least services started but this influenced retail sector because of high decline in demand for non-essential goods and services. After the pandemic the fear of crowded places consumers have preferred to online shopping this was an overall impact on retail business. Due to change in consumer buying behaviour after the pandemic the retail sector need to face the challenges. This paper deals with the impact and challenges faced by the retail sector during the pandemic. The study will focus on the government initiatives to improve the retail industry in India.