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Information @ a Glance


  • Retailing is one of the fastest-growing segments of the economy. As one of the nation’s largest employers, the retail industry provides excellent business opportunities for us.
  • Retailing is one of the most mature industries in our economy, and it’s constantly being reinvented with the advent of new technologies. Changes in buying behavior, attitudes and buying patterns, and the restructuring of the retail industry, have had a significant impact on small businesses.
  • There are two types of Retailers: Outlet Retailers, Non - Outlet Retailers. Outlet Retailers are merchants who buy merchandise from wholesalers or manufacturers for resale to the public. Four major types of outlet retailers are small outlet retailers, chain store retailers, franchise retailers and no frills discount retailers.


  • The Indian retail market, which is the fifth largest retail destination globally, according to industry estimates is estimated to grow from US$ 330 billion in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Simultaneously, organised retail which presently accounts for 4 per cent of the total market is likely to increase its share to 22 per cent by 2010.
  • Foreign Direct Investment (FDI) has increased from US$ 3.1 billion in 2003 to over US$ 5.6 billion in 2006. The major sectors attracting FDI are telecom, electrical equipment, transportation, and pharmaceuticals.
  • Food Sector: Food, at 66%, is the most important sector. In spite of this, organized retail represents less than 1% of the total food retailing business in India, which is currently valued at US$ 145 billion and is expected to grow to US$ 200 billion by 2010.
  • Clothing Industry: At 14%, one of the highest penetration of organised retailing in India is in the clothing sector. The clothing industry, which is valued at approximately US$ 25 billion, is expected to grow at a Compound Annual Growth Rate of 8-9% and touch US$ 38 billion by 2010.


  • Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010.
  • According to the Union Minister of Commerce & Industry,  the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects.
  • The economy is projected to continue to grow at an annual average of 7% over the next ten years and, according to Goldman Sachs, India will emerge as the third largest economy by 2050. Indeed, in terms of Purchasing Power Parity, it is already the world’s fourth largest economy.

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