Retail in India to become $1 trillion in value by 2020: PwC

Retail sector in India is expected to grow by 10 percent to become USD 1 trillion by 2020, PricewaterhouseCoopers (PwC) said.

In a report titled 'The Future of India: The Winning Leap' PwC said India's retail industry (both organised and unorganised) could see a CAGR (compounded annual growth rate) of 10 percent over 2012-2020, growing from USD 500 million to USD 1 trillion in that time frame.

However, report pointed out that 92 percent of India's total retail market remains unorganised, dominated by local shops owned by independent private individuals.

"Though India is one of the fastest growing retail markets in the world, share of organised retail at percent is discouraging compared to other countries (US 85 percent, UK 80 percent, Thailand 40 percent, China 20 percent and South Korea 15 percent), PwC said.

PwC said organised retail is expected to grow 24 percent year-on-year but it will still account for less than a third of the total retail market by 2024.

"We envision India boosting the share of organized retail from 8 percent of total retail in 2012 to 30 percent in 2024 and 50 percent in 2034," the report by theconsultancy firm said.

Domestic organised players operating in the retail segment include Future Group, Aditya Birla Group, Bharti Group. Foreign players including Walmart have been advocating for relaxations of norms for FDI in multi-brand retail. At present, FDI in multi-brand retail is capped at 51 percent.