(a) whether the unprecedented growth in mall culture in the country effected by big corporate
houses has had any adverse impact on small retail outlets in the unorganised sector;
(b) if so, whether the Government has formulated any action plan to protect the business
and earnings of the unorganised retailers; and
(c) if so, the details thereof and if not, the reasons therefor?
MINISTER OF THE STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(PROF. K. V. THOMAS)
(a): The organized retailers register their shops/malls with concerned authorities in StateAJnion Territory
Governments. The share of organized retailing in the total retail trade is very small and it would not have
any major adverse impact on retail outlets in the unorganized sector. The Government had instituted a study
on the subject of `Impact of Organized Retailing on the Unorganized Sector`, through the Indian Council for
Research on International Economic Relations (ICRIER). The report, received in 2008, has projected that both
organized and unorganized retail will not only co-exist but also achieve rapid and sustained growth in future.
The Study also indicated that the growth of organized retail will enhance the employment potential of the
Indian economy. There was no evidence of a decline in overall employment in the unorganized sector as a
result of the entry of organized retailers.
(b) & (c): Retails trade is a state subject and states have their own policy in this matter. The Government
is, however, fully committed to securing the legitimate interests of all stakeholders engaged in the retail
business. Government also fully recognizes the need to ensure that small retailers are riot adversely affected
by the growing organized retail and that there is no adverse effect on employment.