New Delhi: Apparel and FMCG segments will
be the driving forces for the Indian retail sector, which is
likely to grow annually by nine per cent to touch USD 521
billion by 2012, a senior retail industry official said.
"FMCG and apparel sectors contribute the maximum to the
growth of the retail market in India," Bharti Retail President
and COO Vinod Sawhny said during a FICCI event.
"FMCG in particular has a huge potential to grow... and
this will ensure a growth rate of nine per cent year-on-year
for the retail sector, which is likely to touch USD 521
billion by 2012," Sawhny added.
He said the Indian retail market is estimated to be
around USD 350 billion, of which modern retail or the
organised segment has only four per cent share.
"Modern 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 USD 54 billion in the
next three years," he said.
Sawhny said the growth can be attributed to the evolving
consumer behaviour, changing market dynamics as well as to
easier access to capital by both the retailers and consumers.
"India has one of the largest retail industries in the
world and is the second biggest employer in the country. In
the coming years, developing countries like China and India
will be attractive for global players," he said.