Some of the other factors that will lead to the growth of the industry are increased participation of retailers and manufacturers in the organised retail segment, higher discretionary spends, promotional and discounted pricing, increase in the number of products and private labels and more, according to a report by Care Ratings.
The retail industry of India is valued at $672 billion, says the rating agency. It constitutes around 10 per cent to the GDP of India and has an employment share of around 8 per cent.
The factors that have influenced the growth of the industry in India include rise in income levels, favourable demographics, urbanization and increased per capita income. The report adds that credit availability, rising use of plastic money, a growth in the number of working women and growing discretionary spending have contributed towards the sector's growth.
The organised retail market of India takes about 9 per cent share in the sector and is valued at $60 billion, while the unorganized sector accounts for the remaining 91 per cent, as per the report. (KD)
ALCHEMPro News Desk – India
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