News: India to attract $412 bn investment in retail

(PTI 15/10/2006) New Delhi - A staggering Rs 18,09 crore ($ 412 bn) investment will flow into the Indian retail sector by 2011 as rapid economic growth, increasing disposable incomes and lavish lifestyle habits would see the format expand exponentially, according to a study by Price Waterhouse Coopers (PWC) .

"Industry estimates suggest that $412 billion will be invested in the retail sector by 2011. The majority of this investment will be directed toward the two most popular retail formats: hypermarkets and supermarkets," PWC said in the fifth edition of its annual study 'From Sao Paulo to Shanghai - New Consumer Dynamics: The Impact on Modern Retailing'.

According to product category, half of the investment could be directed to food-related retail and the remaining share would be allocated to non-food retail, the study said.

PWC pointed out that a growing population, a youthful workforce and soaring consumer confidence are "solid arguments for long-term growth in India.”

‘Indian consumers' lifestyles and shopping habits are evolving rapidly. Discretionary spending witnessed a 16 per cent increase for the urban upper and middle classes.

"Lifestyle habits are shifting from austerity to complete self-indulgence and Indians are now unapologetic about spending lavishly on non-essential goods such as luxury watches, cars, hi-tech products etc," it said.

Interestingly, Prime Minister Manmohan Singh had earlier this month pegged India's investment requirement for the core sector at ($320 billion) Rs 14.05 crore.