'FDI can scale modern retail to Rs 3.5 tn'

The penetration of the domestic organised retail sector will increase from the current 6.5 per cent to nine by 2015, if the proposed move to allow foreign direct investment (FDI) in retail sector is implemented quickly, according to leading rating agency Crisil.

The organised retail market is expected to be Rs 3.5 lakh crore from the present Rs 1.4 lakh crore, the agency said in a report.

The domestic retail market currently is estimated to be Rs 21.6 lakh crore and by 2015 it is likely to touch Rs 37 lakh crore, Crisil added.

The government is in the process of allowing 51 per cent FDI in multi-brand modern retail, though a consensus is yet to be reached.

"Today there is moderate competition; we feel there will be increased competition very soon. Once foreign players enter, the competitive landscape is expected to change," Crisil Head for Industry Research Ajay D'Souza said.

http://www.financialexpress.com/news/fdi-can-scale-modern-retail-to-rs-3.5-tn/845581/