RPT-Big retailers' share in India to quadruple-report

(Repeats story from Monday)

MUMBAI, May 26 (Reuters) - The share of big retailers in India's retail industry is expected to quadruple to 16 percent by 2011/12 from 4 percent as they lure consumers through competitive pricing, a government think-tank said on Monday.

"Low-income consumers save more than others through shopping at organized retail outlets. This is a result of targeted discount shopping," the Indian Council for Research on International Economic Relations (ICRIER) said in a report.

"It is also seen that farmers gain considerably from direct sales to organized retailers, with significant price and profit advantages as compared with selling either to intermediaries or to government regulated markets," it said.

India's retail industry is dominated by "mom-and-pop" stores, and modern retail faces political obstacles because of concerns million of jobs may be lost in the fragmented but fast-growing industry.

ICRIER said there was no evidence of a decline in employment because of big retail chains.

"The retail sector, left entirely in the unorganized and informal segment of the economy, could well emerge as a major bottleneck to raising productivity in both agriculture and industry," it said.

Indian laws ban foreign multibrand retailers from entering its fast-growing grocery market. Germany's Metro AG (MEOG.DE) and Shoprite Holdings (SHPJ.J) have wholesale centres which operate on a "cash and carry" model.

Indian retail industry should grow by 13 percent annually to $590 billion by 2011/12 from the present $322 billion, ICRIER said in the study that surveyed family-run retailers, consumers, farmers, large and small manufacturers and intermediaries.

Sales of "mom-and-pop" shops are expected to grow by 10 percent every year to $496 billion in three years from $309 billion, it said. (Reporting by Kaustav Roy; Editing by Ranjit Gangadharan)