Retail industry to attain USD 17 billion by 2010

16 May '05

4 min read

The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3% which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The Study has revealed that the retail sector will grow at GDP 7% by 2010 and enlarge its market share to $ 280 billion from its present estimated level of $ 200 billion.

Releasing the Study on `Retail Scenario in India', ASSOCHAM President, Mr. Mahendra K. Sanghi has revealed that the organized sector retailing is all set to grow at much faster speed than unorganized sector and the higher growth speed will alone be responsible for its higher market share which has been projected for $ 17 billion.

Cities and metropolies in which retailing will show booming prospects include Mumbai, Delhi, Chennai, Kolkata, Bangalore and Kanpur, said Mr. Sanghi adding that the popular mode adopted for building shopping malls in these cities will be based on build, operate, lease and sell basis.

This system, as per the findings of ASSOCHAM will lead to establishments of closer linkages and relationship between real estate developers, state governments, financial institutions and retail industry.

As per ASSOCHAM's estimates, investment opportunities that the retail sector will create in next 4-5 years will result into continued urbanization and increase the per capita income of Indian populace which will finally lead to greater consumerism.

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