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There are many international brands entered India and operating successfully after some initial period of learning and development. In the last few years, single brand retail sector has emerged as a big opportunity in India. Factors like modern retail, a rising working women population, a desire for better quality and international brands are all driving growth in this sector. The recent liberalization of the retail FDI norms, the success of some recent entrants and the search for overseas brands to expand into high growth markets are expected to be some of the key growth drivers in the future. India's retail sector is expected to double to USD 1.1 to 1.2 trillion by 2020 from the current USD 630 billion. The retail sector is expected to have grown at 10% during 2015, which is faster than its growth in 2014. However, the growth rate of general trade in 2015 was more than that of modern trade. Modern trade expanded at a rate slower than general trade due to cut-back in discretionary spends by consumers, competition from e-commerce/online sales, and a general slowdown that has seen brick and mortar retailers closing stores. |
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