Size :

India is one of the ten largest retail markets in the world.

Retail sales were $206 billion in 2004, over 30% of GDP.

Organized Retail’ constitutes only 3% of total retail sales - about $6.4 billion p.a.

 

Policy : 

100% FDI is allowed in Cash and Carry Wholesale formats. Franchisee arrangements are also permitted in retail trade.

FDI up to 51% is permissible in the retail trade of single brand products.

 

Outlook :

The overall retail market is expected to grow three-fold in the next 10 years from $206 billion today to about $660 billion by 2015.

Organized retail is expected to grow rapidly to reach $100 billion
by 2015.

Likely to account for 12-15% of total retail sales by 2015.

  

Potential :

The high growth projected in domestic retail demand will be fuelled by:

 

• The migration of population to higher income segments with increasing per capita incomes.

• An increase in urbanization.

 

• Changing consumer attitudes especially the increasing use of credit cards.

  

• The growth of the population in the 20 to 49 years age band.

 

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