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Recently in July 2009, Minister of State for Commerce and Industry in India, Mr Jyotiraditya Scindia, informed the Parliament that India’s retail trade, the second largest employer after agriculture, is estimated to touch US$ 590 billion in the next two years. He also informed the esteemed Lower House that retail trade in India is estimated to grow at 13 per cent per annum from US$ 322 billion in 2006-07 to US$ 590 billion in 2011-12.story continues below>
According to industry research the growth in Indian retail business has shown positive effects owing to the evolving consumer behaviour, changing market dynamics as well as to easier access to capital by both the retailers and consumers. Market research information reveals that Indian consumers are becoming more aspirational and looking forward to adopting a western lifestyle. This trend will drive retail and logistics to have sustained growth and new brands from overseas to cater to an expanding middle class customer base.
As per consulting firm KPMG’s findings in a March 2009 report, the organised retail market in India was worth US$ 25 billion and has witnessed steady growth at 15 per cent in fiscal 2009. Modern organised retail will grow much faster, at the rate of 30-35 per cent annually, than the traditional one in the coming years and will be at the size of US$ 54 billion in the next three years, feel industry retail specialists. Fast moving consumer goods (FMCG) and apparel sectors are likely to drive this growth.
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