As per the rating agency, retail Industry in India constitutes over 10 per cent of the country’s GDP with around 8 per cent of employment and is valued at US $672 billion at present.
The growth in the industry will be on the back of more demand with higher incomes, job creations and improved standard of living, among others, Care said in a statement.
Other factors include higher discretionary spends and higher participation of producers/retailers in the organised retail market, discounted and promotional pricing, increased number of products and more private labels, it added.
Currently, India’s organised retail market is valued at about US $60 billion, only about 9 per cent of the sector, whereas unorganised retail market accounts for the rest.
The agency said that the industry growth has been influenced by factors, including favourable demographics, rapid urbanisation, rising income levels and per capita expenditure.
Easy credit availability, increased use of plastic money, increased discretionary spending, growing female working population have also contributed to the growth, as per the rating agency.