India has emerged as the most attractive destination for retailers. According to the latest AT Kearney study, for the third year in a row, India leads the annual list of most attractive emerging markets for retail investment followed by Russia and China.

Organised retail, which currently accounts for only 4.6 percent of the INR 12,000 bn ($270 bn) Indian retail sector, has the potential to add over INR 2,000 bn ($45 bn)according to IMAGES India Retail Report 2007.

This is expected to create a demand for around 220 mn sq.ft of retail space by 2010. Based on the status of mall projects under progress, this growth in mall space will further increase to 85 percent in 2008,

Malls in India 2007 identifies 36 mega mall projects, each of these having a built up floor space of more than 1 mn sq.ft. The South zone accounts for 15 of these projects, and there are 10 such mega mall projects each in the West zone and the North zone, and one in Kolkata.

As the competition in the market intensifies, mall developers are trying out all possible ways to be different. Specialised malls, designer brands and multi-movie options are marking the shopper’s day out. Gurgaon, on the suburbs of New Delhi, has a jewellery mall and will soon have an auto mall. Bangalore will get an exclusive furniture mall. Two malls, first of their kind, targeting foreign tourists, will come up at tourist hotspots – Goa and Udaipur – with a projected cost of around INR 900 mn ($22 mn) each.

A furnishings mall is coming up on Elgin Road in Kolkata. And India’s largest theme amusement park, Noida Entertainment City, will stand upon over 6.5 mn sq.ft (150 acres) approximately. Discount malls are also on the rise. At least 50 discount malls are expected to come up in the next two years across the country, positioned in the middle-to-the-premium end of the market.