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 (PwC).
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 billion.
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 4% 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 2%, but annual growth will increase at an average rate of over 4% in 2010- 2014," the report said.
According to the report, while retail sales in China will cross the $4,500 billion mark by 2014, India's will be around $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.
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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% of the total retail sales compared to 65% in the US, 55% in Malaysia and 10% 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 $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% during 2010-2014, in value, sales of food are expected to almost double from $2.7 trillion in 2010 to $4.6 trillion in 2014.
"Demand growth will be strongest in China, where it is predicted to average 5.7% in the forecast period. India will see 3.2% average annual demand growth," the report said.