The size of India’s retail industry is expected to more than double to $1.3 trillion by 2020, led by an estimated 25 percent average annual growth in organized retail if overseas investment is permitted in the sector, an industry body has said.
The country’s traditional retail industry is expected to grow at an average annual rate of five percent over the next year, while the organized retail is estimated to register a growth rate of around 25 percent during this period.
Currently, almost 94 percent of India’s retail industry is unorganized or traditional.
The central government recently took a decision to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail and raise the limit for overseas investment in single-brand retail to 100 percent.
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