New Delhi: India will need around 56 million skilled workers in the booming retail sector by 2022, which is currently estimated at $435 billion and expected to witness a CAGR of 18.1% over the next 4-5 years to touch $848 billion, according to a NSDC report.
At present, distribution of workforce in the retail industry is concentrated mainly in five states, including Uttar Pradesh, Maharashtra, Andhra Pradesh, West Bengal and Tamil Nadu, which account for over 45% of those employed.
However, tier 2 and smaller cities are set to evolve to organise retail format rapidly in the near future.
The retail sector, which contributes 23% to the GDP, was driven by an increasing Private Final Consumption Expenditure (PFCE) over the last few years and grew from Rs 19 lakh crore in 2005 to around Rs 51 lakh crore in 2012.
There will be a considerable rise in demand for skilled manpower in retail sector as the industry has been growing at a steady pace, fuelled by factors like changing lifestyles, rising disposable incomes, favourable demographics, and easy credit availability, according to the report.
“To match the requirement of skilled manpower we need to further scale up our efforts. The sector not only offers jobs but also entrepreneurship opportunities to trained manpower,” MD & CEO, National Skill Development Corporation (NSDC), Dilip Chenoy said.
According to the report, the employment base of the industry is expected to reach 56 million by 2022 across conventional and specialised retail segments.