Great news for Indian shopper's! Indian retail market to reach $1.3 trillion by 2020

India's retail market is expected to expand to $1.3 trillion by 2020 and the GDP is set to grow at 8 per cent over the next three years, making it the world's fastest-growing major developing market, a consultancy firm has forecast.

The current retail sales in India is worth $925 billion and had grown at 5.8 per cent on compounded annual growth rate in 2010-2014, A T Kearney said in a report on the 2015 Global Retail Development Index.

"Consumer and investor sentiment have seen an uptick, as the pro-reform government under Prime Minister Narendra Modi sets out on an ambitious goal of improving its Ease of Doing Business ranking from 142nd to 50th in the next two years," it said.

"India's retail market is expected to grow to $1.3 trillion by 2020, and GDP is expected to grow at 8 per cent over the next three years, making India the world's fastest-growing major developing market," the report said.

India has risen five positions to rank 15th in the latest edition of the index, the London-based consultancy firm said.

"India represents a good opportunity for international retailers in single-brand retail, cash-and carry, and e-commerce, as the country appears to be on the cusp of a strong growth phase over the next five years," it said.

The tipping point for brick-and-mortar retail continues to be the opening up of Foreign Direct Investment (FDI) norms in multi-brand retail, a move that is not expected in the near-term.

After two years of dormancy, Walmart will open a new outlet in Agra this year and plans to add 50 wholesale stores to its existing 20 in the next five years, the report said.

(Image Courtesy: realcommercial.com.au)