Economic risk

The level of risk associated with international retailing in India is influenced by macroeconomic forces such as economic instability and global crises (Strickler, 2022). The Covid-19 pandemic, for example, caused significant economic risk for businesses in India. Between 2013 and 2018, India’s retail market was growing steadily, but it took a sharp decline in 2020 due to the global pandemic. According to Statista, India’s retail market is not expected to recover to pre-Covid levels until 2026 (Jones, 2023). The pandemic caused disruptions in the supply chain, including delays in transportation, which made it difficult for retailers to get products and inventory (Palavi, 2022). During this time, consumer behavior also shifted, with many people focusing only on essential items, which changed demand patterns (Palavi, 2022). Additionally, India faces structural economic challenges due to non-performing assets and bad loans, which further increase risks for international retailing in the country (Huang, 2023). These factors show that the risks in the Indian retail market are significant, especially in times of global uncertainty.