With 10 Per Cent Annual Growth, India’s Retail Industry May Double To Rs 85 Lakh Crore By 2021: Report

Growing at 10 per cent annually, India’s retail industry may double to Rs 85 lakh crore by 2021, a joint report prepared by FICCI and Deloitte has said.

The report says that consumer data and technology disruptions will steer retail and FMCG sectors towards a new phase of growth. Consumer experience will be the focal concern for all retailers and brands, it adds.

“Consumer retail forms an integral part of the industry with current estimated size of more than Rs 45 trillion. It is further expected to witness a CAGR of over 10 per cent in 2016-21 to reach a size of Rs 85 trillion by 2021," Deloitte Touche Tohmatsu India Partner Rajat Wahi was quoted by the Economic Times as saying.

According to the report, the Internet will play an important part in driving the growth for consumer business sectors and consumer data and insights will be at the forefront of defining the trends. "The data generated by shoppers and consumer behaviour would be leveraged to overhaul the consumer retail journey, using means such as Internet of Things (IoT) and predictive analysis," it reads.

Spending on digital marketing is also expected to double in the next four years to 24 per cent of total expenses, the report says.

The report notes that this growth will be fueled by increasing use of smartphones, apps, web, social media etc will lead to the growth of omni-channel retail.