Apparel and FMCG segments will be the driving forces for the Indian retail sector, which is likely to grow annually by 9 per cent to touch $521 billion by 2012, a senior retail industry official said.
"FMCG and apparel sectors contribute the maximum to the growth of the retail market in India," Bharti Retail President and COO Vinod Sawhny said during a Ficci event.
"FMCG in particular has a huge potential to grow... And this will ensure a growth rate of nine per cent year-on-year for the retail sector, which is likely to touch $521 billion by 2012," Sawhny added.
He said the Indian retail market is estimated to be around $350 billion, of which modern retail or the organised segment has only 4 per cent share.
"Modern retail will grow much faster, at the rate of 30-35 per cent annually, than the traditional one in the coming years and will be at the size of $54 billion in the next three years," he said.
Sawhny said the growth can be attributed to the evolving consumer behaviour, changing market dynamics as well as to easier access to capital by both the retailers and consumers.
"India has one of the largest retail industries in the world and is the second biggest employer in the country. In the coming years, developing countries like China and India will be attractive for global players," he said.
