New Delhi: Union Minister of Commerce & Industry Kamal Nath today released the India Retail Report 2007, a magnificent 416-page research volume on the status and opportunities in organised retail across sectors in India. At a press conference in Udyog Bhawan, Nath lauded the findings in the book and congratulated the industry on the terrific gains organised retail has made in India.
According to the India Retail Report 2007, the retailing industry in India, estimated at Rs.1,036,000 crore (2005-06) is expected to grow at about 6 per cent in 2007-08. The size of the organised retailing market in 2006 stood at INR.48,500 crore (at 2003-04 constant prices), thereby making up a mere 4.7 per cent of the total retailing market. Moving forward, organized retailing is projected to grow at the rate of about 37 per cent in 2007 and 42 per cent in 2008. Of the Rs.1,036,000 crore retail market, Food & Grocery retail is by far the single largest block estimated to be worth a whopping Rs.642,200 crore, but more than 99 per cent of this market is dominated by the neighbourhood kirana stores. Clothing, textiles and fashion accessories constitute the second largest block, but the largest segment as far organised retailing is concerned is the timewear sector with nearly 46 per cent share of the segment being organised
Reflecting the robust growth in India’s GDP, consumer expenditure (in current prices) grew at a relatively high pace of nearly 10 per cent per over the review period of 2003-05. Even after taking inflation into account, real growth averaged about 6.3 per cent during 2004-05. Total private final consumption in the Indian market stood at six per cent in the review period.