India offers the greatest investment opportunities for international retailers, a study has found. 

India topped consultancy AT Kearney’s Global Retail Development Index. It came ahead of Russia, which remains a highly fragmented market and therefore opportunities for modern retailers and China, which should reap economic benefits from a $585bn government stimulus package.

Other top investment locations include the UAE, which has the highest per capita spending amongst emerging nations and Saudi Arabia, which has a stable economy and is creating retail space at the King Abdullah Economic City.

Slowing sales have forced Indian retailers to delay expansion plans, creating opportunities for global groups such as Tesco and Wal-Mart to capitalise on the increasingly affluent, urban and brand-conscious consumers.

AT Kearney partner Michael Moriarty said: “Countries throughout Asia are well positioned for an early recovery from the economic crisis as domestic demand is holding up well, GDP growth continues and trillions of dollars of sovereign reserves are providing governments and state banks with tools for action.

“Asian countries continue to transform their economies with domestic consumption as a primary focus – a trend that should favor continued growth in retail over the long term.”