CARE Ratings expects the long-term outlook for the Indian retail sector to remain positive on the back of rising incomes, favourable demographics, entry of foreign players and increasing urbanisation in India.

''Going forward, revival in the consumer sentiments, curtailing of debt funded expansion plans, clarity on the Foreign Direct Investment policies by the Government of India and efficient management of the supply chain is critical for the sector,'' said CARE Ratings.

''Currently, however, the organized retail sector in India which accounts for about 8% of the overall retail market in India is going through a difficult phase-high real estate costs, faltering domestic consumption and limited infrastructural capabilities curtail the potential for profitable growth,'' it added.

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