Budget 2009-10: Retail
Currently, India is the fifth largest retail market in the world. The market size in 2008 was estimated at US$ 511 bn (Source: IBEF, CB Richard Ellis' findings). Retailing has played a major role the world over in increasing productivity across a wide range of consumer goods and services. In the developed countries, the retail industry has developed into a full-fledged industry where the organised sector accounts for almost 80% of the total retail trade. In contrast to this, in India, organised retail trade accounts for merely 5% of the total retail trade and is expected to grow at the rate of 30% to 40%. However, during the medium term, the growth rate in this sector has slowed down to 7% to 10% owing to economic slowdown.
Despite it being a tough year for the retail sector, India tops the rankings of A.T. Kearney's Global Retail Development Index. As compared to other emerging markets, India has a more stable and stronger economy and the penetration levels are low. Due to these reasons, India is still the most attractive destination for international retailers looking at expanding into emerging markets.
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