Indian retail sector to touch $1150 bn by 2020: Care

03 Jun '17

2 min read

The Indian retail sector is likely to witness a growth rate of 12-14 per cent in the next four years to touch $1,150 billion by the year 2020, according to a recent report. A rise in demand with higher incomes, increased job creation and an improvement in the standard of living of the people in the country are expected to lead to this growth.

Some of the other factors that will lead to the growth of the industry are increased participation of retailers and manufacturers in the organised retail segment, higher discretionary spends, promotional and discounted pricing, increase in the number of products and private labels and more, according to a report by Care Ratings.

The retail industry of India is valued at $672 billion, says the rating agency. It constitutes around 10 per cent to the GDP of India and has an employment share of around 8 per cent.

The factors that have influenced the growth of the industry in India include rise in income levels, favourable demographics, urbanization and increased per capita income. The report adds that credit availability, rising use of plastic money, a growth in the number of working women and growing discretionary spending have contributed towards the sector's growth.

The organised retail market of India takes about 9 per cent share in the sector and is valued at $60 billion, while the unorganized sector accounts for the remaining 91 per cent, as per the report. (KD)

Fibre2Fashion News Desk – India

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