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India's retail market to reach 
1.6 trillion by 2008
Monday, 10 January 2005, 20:30 IST
NEW DELHI: Organised retailing in India will register a quantum jump of 36 percent over the next few years to reach 
1.6 trillion ($37 billion) by 2008, an industry study has said.
The retail market is projected to grow at the rate of 36 percent by 2008, of which the organised sector is expected to increase by a little over three-fold from the present level of 50 billion ($1.16 billion) to 1.6 trillion, according to the study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
"The overall size of the retail market in India at present is estimated at 5.88 trillion ($136.74 billion), of which the unorganised market is worth 5.83 trillion ($135.58 billion) while the share of the organised market is 50 billion, including the organised food and grocery (6 billion) sector," said ASSOCHAM president Mahendra K. Sanghi, releasing the study here Sunday.
He noted that because of expansion and diversification underway in the organised retail sector because of the demand factor, it would conveniently touch a business of 1.6 trillion by 2008.
"Initiatives of the central and state governments in the form of allocation of land at concessional rates, grant of loans at liberalised interest rates to promoters of shopping malls and rationalisation of state levies are prime factors that will aggressively inspire organised retailing," said Sanghi.
The study estimated the overall size of the retail market would reach 8 trillion ($186 billion) by 2008 from its current level of 5.88 trillion, registering a 36 percent growth.
Sanghi pointed out that though the 'kiranas' or neighbourhood stores still dominate retailing in India because of a plethora of local, regional and national laws such as operating hours and restrictions on movement of goods, reforms would soon change the scenario.
"This will motivate and encourage the organised sector, particularly when the entry of foreign direct investment into retailing is being opposed tooth and nail by a section of the society as well as polity," said Sanghi.
According to ASSOCHAM estimates, the retail sector will create 50,000 jobs a year over the next five years to emerge as the second largest source of employment.
The study pointed out that franchising would emerge as a popular mode of retailing in the coming years and lead to a proliferation of brands with foreign and Indian companies acquiring strong brand equities for their products.
Source: IANS
1.6 trillion ($37 billion) by 2008, an industry study has said.
The retail market is projected to grow at the rate of 36 percent by 2008, of which the organised sector is expected to increase by a little over three-fold from the present level of 50 billion ($1.16 billion) to 1.6 trillion, according to the study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
"The overall size of the retail market in India at present is estimated at 5.88 trillion ($136.74 billion), of which the unorganised market is worth 5.83 trillion ($135.58 billion) while the share of the organised market is 50 billion, including the organised food and grocery (6 billion) sector," said ASSOCHAM president Mahendra K. Sanghi, releasing the study here Sunday.
He noted that because of expansion and diversification underway in the organised retail sector because of the demand factor, it would conveniently touch a business of 1.6 trillion by 2008.
"Initiatives of the central and state governments in the form of allocation of land at concessional rates, grant of loans at liberalised interest rates to promoters of shopping malls and rationalisation of state levies are prime factors that will aggressively inspire organised retailing," said Sanghi.
The study estimated the overall size of the retail market would reach 8 trillion ($186 billion) by 2008 from its current level of 5.88 trillion, registering a 36 percent growth.
Sanghi pointed out that though the 'kiranas' or neighbourhood stores still dominate retailing in India because of a plethora of local, regional and national laws such as operating hours and restrictions on movement of goods, reforms would soon change the scenario.
"This will motivate and encourage the organised sector, particularly when the entry of foreign direct investment into retailing is being opposed tooth and nail by a section of the society as well as polity," said Sanghi.
According to ASSOCHAM estimates, the retail sector will create 50,000 jobs a year over the next five years to emerge as the second largest source of employment.
The study pointed out that franchising would emerge as a popular mode of retailing in the coming years and lead to a proliferation of brands with foreign and Indian companies acquiring strong brand equities for their products.
Source: IANS