PwC: Indian retail sector to grow to about $900 bn by 2014
February, 04th 2011
With rising disposable incomes, expansion of stores and supporting economic factors, India's retail sector is expected to grow to about $ 900 billion by 2014, according to a report by global consultancy and research firm PricewaterhouseCoopers .
The report titled -- Strong and Steady 2011 -- which provides an outlook for the retail and consumer products in Asia suggests that retail sales in India, currently estimated at about $500 bn.
While the report did not specify the value growth, it said in terms of volumes, retail sales in India would grow at an average of four per cent between 2010 and 2014.
"In India, Asia's third-largest retail market after China and Japan, high inflation in 2010 is expected to keep retail sales growth under two per cent, but annual growth will increase at an average rate of over four per cent in 2010- 2014," the report said.
According to the report, while retail sales in China will cross the USD 4,500 billion mark by 2014, India's will be around USD 900 billion.
It cited rising incomes, increase in urbanisation and a variety of new stores, including international brands opening their outlets in India, as the growth drivers.
The report, however, said "expansion in the attractive Indian market will remain constrained by restrictions on foreign investment."
In India modern retail accounts for only 5 per cent of the total retail sales compared to 65 per cent in the US, 55 per cent in Malaysia and 10 per cent in China.
The report said in Asia as a region retail sales are expected to grow to more than $ 8.5 trillion in 2014 from USD 5.4 trillion in 2010.
Multinational retailers such as Wal-Mart, Tesco, and Metro will continue to expand their operations in Asia as modern retail outlets continue to rise in popularity.
Demand in food, beverage and tobacco sector in Asia is expected to grow moderately at 3.4 per cent during 2010-2014, in value, sales of food are expected to almost double from $2.7 trillion in 2010 to USD 4.6 trillion in 2014.
"Demand growth will be strongest in China, where it is predicted to average 5.7 per cent in the forecast period. India will see 3.2 per cent average annual demand growth," the report said.