Foreign Direct Investment (FDI) in retail could lead to an estimated 25 per cent growth over the next year in the organised retail and double its size to USD 1.3 trillion by 2020. On the other hand, country's traditional retail industry is expected to grow only 5 per cent.
R.V. Kanoria, president of the Federation of Indian Chambers of Commerce and Industry (FICCI) said, "The Indian retail is poised to become a USD1.3 trillion opportunity by 2020. With the current market size estimated at USD 500 billion, this translates to an additional USD 800 billion in the next eight years."
Stating the benefits of FDI in retail, Kanoria said, "FDI in retail would help in addressing this issue with compulsory investment of 50 percent in back-end."Earlier, the UPA government approved 51 per cent FDI in multi-brand retail and increased the limit for foreign investment in single-brand retail to 100 per cent.