The retail industry in India is expected to grow at a rate of 12-14 per cent over the next four years and reach about $1,150 billion by 2020, Care Ratings said.
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 $672 billion at present.
According to care, 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.
It added, "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.”
The agency said that the industry growth has been influenced by factors, including favourable demographics, rapid urbanisation, rising income levels and per capita expenditure.
As per Care ratings, easy credit availability, increased use of plastic money, increased discretionary spending, growing female working population have also contributed to the growth.