Indian retail market to grow to $637 billion by 2015
25 Apr 2008
New Delhi: Indian retail will grow to $637 billion by 2015 and modern retail, which presently accounts for 4 per cent of the total market, is expected to increase its share to 22 per cent by 2010.
"Delhi is India's largest consumer market with the highest concentration of households with an annual income of $110,000 and per capita income more than double the national average," said Dr Ashwani Kumar, minister of state for industry, while addressing the Confederation of Indian Industry's "Making Delhi a global retail destination" at Retail Symposium 2008.
"Delhi is a destination for shopping across India besides its own consumption appetite. It is the principal business and commercial centre in northern India, well complemented by industrial areas in the national capital region," he said.
With an economy size of Rs118,240 crore, Delhi is the largest market in the country, and the biggest consumption centre in north India and a major distribution centre by virtue of its geographical location Dr Kumar said.
"A family in Delhi spends Rs2.1 lakh per annum on an average, while it saves Rs50,000. As people prosper further, the savings will further go up, which will result in bigger retail industry. As the benefit of economic liberalization spreads and more and more people rise above poverty line, retail activities will gain momentum," Dr Kumar said.
Praising entrepreneurs and the government's policies in facilitating the rise of modern trade, Dr Kumar highlighted the employment opportunities that organised retail industry can create. The rise of services industry and working women will propel the retail industry in India. The minister highlighted the fact that India would not be hard hit by the global slowdown as 95 per cent of growth was driven by domestic consumption.
Saying India needed more retail space and retailers need support from landlord and the government, Nilesh Ved, CEO, Apparel Group, said in his address that Indian retailers and the government had much to assimilate from the experience of Dubai.
"Despite the slowdown, India will have big consumption opportunities," said Sanjay Verma, executive managing director, South Asia, Cushman & Wakefield, and added that retailers should also work closely to come up with formats suitable for customers. "We have to think of ways to increase the size of the retail industry.
"In view of Commonwealth Games, we need to transform the city and the retail sector can play a critical role in transforming it," observed Pranay Sinha, Conference Chairman, Retail Symposium 2008, said Delhi has all the ingredients to become a world-class city. which will benefit everyone. In view of changing economic climate, the government needs to look into archaic taxation and licensing laws and make them simpler.
