India's move to allow foreign retailers to invest in country will create US$80B market opportunity for international supermarket chains by 2021, finds study; India's retail sector to grow to US$810B in sales by 2021 from current US$490B
October 12, 2012
(Industry Intelligence Inc.)
– India’s move to allow foreign companies to invest in its retail sector will create a market opportunity for global supermarket chains worth US$80 billion by 2021, according to a report by consulting firm Technopack Advisors, The Wall Street Journal reported Oct. 11.
The decision to allow foreign direct investments in multibrand retail firms, though controversial, will benefit farmers, workers, consumers and the companies, according to the Technopack report, The Journal reported.
The report disputed the concern that the arrival of large multinational firms would displace small business owners, noting that independent retailers in the country have added 4 million jobs in the past 10 years, even as large Indian retailers have set up shop.
According to the report, India's retail sector will reach US$810 billion in sales by 2021 from its current US$490B, with an eventual even split between domestic and foreign retailers.
The primary source of this article is The Wall Street Journal, New York, New York, on Oct. 11, 2012.