IJMSS Vol.04 Issue-12, (December, 2016) ISSN: 2321-1784 International Journal in Management and Social Science (Impact Factor- 6.178) A Monthly Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories International Journal in Management and Social Science http://www.ijmr.net.in email id- irjmss@gmail.com Page 349 DEMONETIZATION & INDIAN RETAIL :PRE- EMPT THE FUTURE Anjali Vig Kapoor Prof. (Dr.) Parul Khanna Research Scholar Dean R&D, Research Supervisor Singhania University Institute of Management & Technology, Fbd. ABSTRACT: The recent surgical strike of Modi Government, to combat the ill-practices of corruption, black money and counterfeit notes by the strategy of demonetization has undeniably impacted the Indian retail industry due to lack of liquidity in the economy. This demonetization drive could give a spark to new digital economy in India. PURPOSE: Purpose of this paper is to analyse the current scenario of demonetization on the Indian retail sector. Purpose of this paper is to convey a path to policy formulator and researchers towards importance and effect of retail industry in today’s challenging times. KEYWORDS: Retail Management, Indian Retail, Economy, Demonetization, Mobile wallets. METHODOLOGY: This research paper is prepared by reviewing related literature produced in the area of demonetization and also in the areas of retail. I have also incorporated views of experts, policy formulators and common man related to this issue. Research paper is based on secondary data and provides only descriptive information and no statistics are used. MANUSCRIPT: INDIAN RETAIL The Indian retail industry has surfaced as one of the most vibrant and swift industries due to the entry of several new players. It reports for over 10% of the India’s Gross Domestic Product (GDP) and approx. 8% of the employment. India is the world’s fifth-largest global destination in the retail space. Due to rising income levels, urbanization, and changing consumer behaviour the Indian Retail has taken an incredible reformation which provides an optimistic outlook to the retail sector, as well as holds promising growth in the future. However the upcoming fever of digital medium has influenced retail with a powerful thump, restructuring customer behaviour and expectations. The Indian retail sector is highly sectioned and the unorganised sector has approx. 13 million retail outlets that report for around 95-96% of the total Indian retail industry. However, the organised sector’s growth potential is expected to increase due to globalisation, high economic growth, and improved lifestyle. Although the growth potential in the sector is immense, there are following few obstacles which could slow the pace of growth for new entrants.  Rigid regulations,  high personnel costs,  real estate costs,  lack of basic infrastructure, and  highly competitive domestic retailer groups are some such challenges.