Indian retail grows at 14 per cent

The retail industry in India is expected to grow at a rate of 12 to 14 per cent over the next four years. The growth will be on the back of more demand with higher incomes, job creations and improved standard of living. Other factors include higher discretionary spends and higher participation of producers/retailers in the organised retail market, discounted and promotional pricing, increased number of products and more private labels.

Easy credit availability, increased use of plastic money, increased discretionary spending, growing female working population have also contributed to the growth. Factors like favorable demographics, rapid urbanisation, rising income levels and per capita expenditure also contribute.

The retail industry in India constitutes over ten per cent of the country's GDP with around eight per cent of employment and is valued at 672 billion dollars at present.Currently, India's organised retail market is valued at about 60 billion dollars, which is only about nine per cent of the sector, whereas the unorganised retail market accounts for the rest.

India has occupied a remarkable position in global retail rankings; the country has high market potential, low economic risk, and moderate political risk. India’s net retail sales are quite significant among emerging and developed nations; the country is ranked third after China and Brazil.