Why is Fitch Negative on Indian Retail ?

Negative Outlook on Indian RetailIndia Ratings a Fitch Company has maintained a negative outlook on the Indian retail sector for 2013. The report cites – protracted weakness in consumer’s discretionary spending due to high inflation, real wage growth is nominal and low level of macroeconomic activity. All this leads to a credit squeeze, high operating costs and poor margins at the retailers end.

Other Metrics such as Private Final Consumption Expenditure (PFCE) has hit an eight-year low. The trend adds more fuel to the fire (more…)