Home / Knowledge / News / Apparel/Garments / Indian organized retail to grow at 24% CAGR
Indian organized retail to grow at 24% CAGR
14
Feb '14
Growing at a compounded annual growth rate (CAGR) of 15 per cent overall retail market in India including both organized and unorganized sectors is likely to reach a whopping Rs 47 lakh crore by 2016-17 from the level of Rs 23 lakh crore recorded in 2011-12, according to a joint study by apex industry body ASSOCHAM and Yes Bank.

“Organised retail, which constituted a meagre seven per cent of total retail in 2011-12 is estimated to grow at a CAGR of 24 percent and attain 10.2 percent share of total retail by 2016-17,” according to a study titled ‘FDI in Retail: Advantage Farmers’ jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Yes Bank.

“Rising incomes will be primary driver of this growth in the retail sector,” said Mr D.S. Rawat, Secretary General of ASSOCHAM while releasing the findings of the study.

“Favourable demographics, increasing urbanization, nuclearisation of families, rising affluence amid consumers, growing preference for branded products and higher aspirations are other factors which will drive retail consumption in India,” said Mr Rawat. “Both organized and unorganized retail are bound not only to coexist but also achieve rapid and sustained growth in the coming years.”

On the supply side, this growth will be supported by expansion plans of existing players and the entry of new players, noted the study.

However, the inefficiencies in current supply and presence of numerous intermediaries are difficult to curtail, it added. “Lack of basic infrastructure like roads, power, water and others is a major shortcoming that needs to be addressed in order to procure as well as supply on a pan India basis.”

“Dearth of skilled manpower, numerous clearances required to set up a retail outlet, lack of basic infrastructure like roads, power, water and others certain major bottlenecks hampering the growth of retail segment and required to be addressed effectively in order to procure and supply on a pan-India basis,” said Mr Rawat.

“Modernisation of traditional markets through public-private partnership (PPP), initiating uniform license regime applicable nationwide thereby doing away with numerous permits currently required for establishment of retail outlets, facilitating innovative banking solutions to ensure credit availability to unorganized retailers and farmers from financial institutions, stringent rules against collusion and predatory pricing and a code of conduct for organized retail sector for dealing with their suppliers,” added the ASSOCHAM secretary general while listing major policy recommendations to spur growth in India’s overall retail sector.

“The store-based retailing is likely to witness a CAGR of 7.6 per cent during 2011-16 and will grow by 44 per cent in absolute terms during this period,” further highlighted the ASSOCHAM-Yes Bank study. “Within store-based retailing, grocery retailers are forecasted to grow at a CAGR of 8.9 per cent during 2011-16 and non-grocery retailers will grow at six per cent in current sales value terms.”

ASSOCHAM


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Urmil Arya

Sushila International, a well established textile organisation established ...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search