Organised retail trade to touch $45 bn mark by 2010
Tuesday, 09 January 2007, 18:30 IST
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New Delhi: India's organised retail trade is poised to touch the $45 billion mark generating jobs for about 2.5 million people, according to a report released. "After leading the IT bandwagon, India is poised to grow as a major retail hub. What is needed is to create an appropriate environment for growth of retail trade in India," Commerce and Industry Minister Kamal Nath said while releasing the India Retail Report 2007. "However, there are several challenges ahead in this context such as escalating real estate costs, scarcity of skilled workforce and structured supply of merchandise," he added while assuring that these challenges can be met successfully. According to the report, the Indian organised retail sector accounted for business worth $12.4 billion in the calendar year 2006. It is projected to grow at the rate of 37 percent in 2007 and 42 percent in 2008. It noted that of the $270 billion Indian retail market, food and grocery is by far the largest block estimated to be worth about $165 billion. More than 99 percent of this market is dominated by neighbourhood small stores. "With escalating consumerism, unprecedented awareness and a youth-heavy customer base, India is the 'Promised Land' for global brands and retailers," the report said. "AT Kearney's '2005 Global Retail Development Index' gives a clear message to global retailers on India: move now or forego prime locations and market positions that will become saturated quickly." Global retailers that missed out on capturing first-mover advantage in China can make up for it in India, is said.
Source: IANS
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