Retail sector is the largest industry in India and second largest employer after agriculture. As per Indian Council for Research on International Economic Relations (ICRIER) study report on “FDI in retail sector in India” commissioned by the Department of Consumer Affairs, the size of Indian retail market has been estimated at Rs.7,40,000 crore in 2002. On an average, this sector has grown at 7% per annum during 1999-2002. With the growth of organised retailing, retailers are investing in supply chain management, technology, sourcing directly from the manufacturer and reducing the cost.
About 98% of the Indian retail market is in the unorganised sector and 2% is in the organised sector. Except for investment in land and building, there is little investment required for conducting retail business, in the unorganised sector, as goods are bought on credit and sold on cash basis.
For the growth of the retail sector, Planning Commission (in the 10th Five Year Plan) and ICRIER report have recommended measures which include: simplification of taxation laws; according industry status to retailing; review of laws (including APMC Act) and appropriate zoning laws.
SB/MRS
(Release ID :11494)