Retail Trading : Laws & Foreign Investment in India 22nd September, 2012
Retailing in India is one of the sunrise sector of the Indian economy and accounting for 14 to
15 % of its GDP. The Indian retail industry has experienced high growth over the last decade
with a noticeable shift towards organized retailing formats. The Indian retail industry is the
fifth largest in the world comprising of organized and unorganized sectors.
India's retail market is expected to grow at 7% over the next 10 years, reaching a size of US$
850 billion by 2020. Traditional retail is expected to grow at 5% and reach a size of US$ 650
billion (76%), while organized retail is expected to grow at 25% and reach a size of US$ 200
billion by 2020.
The size of India's retail market was estimated at US$ 435 billion in 2010. Of this, US$ 414
billion (95% of the market) was traditional retail and US$ 21 billion (5% of the market) was
organized retail. India has been said to be the fourth most attractive nation for retail
investment, among 30 emerging markets.
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