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Indian retail sector is expected to grow 17% in the current financial year, highest after last two years, on the back of expected higher gross domestic product (GDP) growth, said a new report.
The sector grew 13% in FY 2013 and FY 2014 after 20% plus growth in the previous financial years, said Dun & Bradstreet.
".....implementation of few economic reforms along with financial stability of the domestic economy is likely to restore the attractiveness of Indian market amongst investor and boost investment climate. The higher expected GDP growth during FY15 is likely to translate in growing domestic consumption across various product segments,"Dun & Bradstreet said.
Improvement in economic activity and rising confidence among consumers in FY15 are expected to result in growing consumption spending and thereby result in the retail sector development, it said.
The report said that due to competition between MNCs and domestic retailers, product pricing has declined and the affordability has improved.
The outstanding loan disbursement to consumer durable stood at Rs 11000 crore as on Jan 24 2014 compared to INR 8000 crore as on Jan 25
2013, registering an annual growth of 37.5%.
