New Delhi: Growing retail and wholesale trading backed by huge domestic market is the main attraction for global retail chains to set up stores in the country, industry chamber ASSOCHAM said on Friday.

"Trading is growing and will continue to grow because our main strength is our 120 crore people. They provide a huge market," said ASSOCHAM President Rajkumar Dhoot.

The retail sector seems to be largely immune to the slowdown, unlike in the west where retailers depend so much on the high end consumer durables, he said.

"It was no surprise that there is so much pressure on the government from the global investors to open the Indian retailing sector," Dhoot added.

Quoting the RBI data, the chamber further said that the credit growth in the trading sector expanded by 26 per cent in June as compared to the same month previous fiscal.

"While the wholesale trading absorbed credit expansion of 30 per cent, the retailers’ borrowing increased by 21 per cent," it said.

The Cabinet had decided on November 24, 2011 to allow 51 per cent foreign direct investment (FDI) in multi-brand retail, but the same could not be implemented in the face of strong opposition from UPA allies Trinamool Congress, and several state governments.

(Agencies)

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