The Federation of Indian Chambers of Commerce and Industry (FICCI) has reportedly stated that with the permitting of overseas investment, India’s retail industry would grow at an estimated 25% average annual growth in organised retail, and is expected to more than double to $ 1.3 trillion by the year 2020.
The current market size is estimated at $ 500 billion, with nearly 94% of India’s retail industry being unorganised or traditional.
As reported in the media, FICCI had organised an interactive meeting with different stakeholders of retail industry, such as representatives of small Kirana stores, farmers and consumers, to gain an insight into the immediate concerns of the industry.
Average growth projection for India’s traditional retail industry is expected at an annual rate of 5% over the next year. However, the organised retail sector is estimated to grow at the rate of around 25% for the same period.
FICCI has supported the FDI in multi-brand retail, stating that it would help improve back-end infrastructure and reduce wastage, especially of fruits and vegetables. An investment of Rs 64,000 crore is required for this.
At present, nearly 35-40% of farm produce and 10% of food grains in India are wasted due to lack of storage facilities.
The FDI will also reportedly increase the employment figures in the organised retail sector to two million by 2016, from the 800,000 at present.