Pvt-public partnership to boost retail sector
"There is scope for public private partnership in real estate management and infrastructure for retail", said Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, India.
By TNN |
A major requirement for the growth of retail is real estate development and adequate infrastructure. One way is to build these through the Public Private Partnership model.
"There is scope for public private partnership in real estate management and infrastructure for retail", said Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, India.
He was speaking at a session titled "Will there really be a retail revolution" at the India Economic Summit, jointly organised by the World Economic Forum (WEF) and Confederation of Indian Industry (CII), here on Monday.
The other important requirement for the growth of the retail sector in India is an efficient logistics chain, where Foreign Direct Investment was possible, added the Secretary. Mr Dua, urged the retailers to expand beyond the metros. "The retailers need to go into Tier 1,2,3,4 cities and the rural markets and penetrate the market through schemes such as micro credit", he said.
Speaking on the issue of FDI, Mr Adi B Godrej, Chairman, The Godrej Group, India, said "for logistics support, especially for rural logistics, there is need for FDI. If we can attract international chains to invest in logistics it will be good for India."
Talking about the other factors that would give an impetus to Retail in India, Mr Godrej said, "For modern retail to pick up, the Agriculture Produce Marketing Act needs to be changed. An efficient fresh foods logistics chain will benefit everyone.
Mr Mukesh D Ambani, Chairman and Managing Director, Reliance Industries, India, said, "The retail revolution, especially in food, offers a huge opportunity to create purchasing power at the bottom of the pyramid. It is important to focus on creating a value chain and large scale local employment."
According to Mr Ambani, the opportunity for retail lay in partnering with the small "kirana stores" and in delivering health, micro credit, education and entertainment to the rural area. While India had an effective last mile in the Kirana Stores, there was need to use technology to remove wastage, he said.
Responding to a question on whether the Retail Revolution would impact the kirana store, Mr Ajay Dua said "it would depend on the location of the hyper and super markets. It is estimated that by 2010, there would at best be 1000 hyper markets and 3000 super markets in India."
"There is scope for public private partnership in real estate management and infrastructure for retail", said Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, India.
He was speaking at a session titled "Will there really be a retail revolution" at the India Economic Summit, jointly organised by the World Economic Forum (WEF) and Confederation of Indian Industry (CII), here on Monday.
The other important requirement for the growth of the retail sector in India is an efficient logistics chain, where Foreign Direct Investment was possible, added the Secretary. Mr Dua, urged the retailers to expand beyond the metros. "The retailers need to go into Tier 1,2,3,4 cities and the rural markets and penetrate the market through schemes such as micro credit", he said.
Speaking on the issue of FDI, Mr Adi B Godrej, Chairman, The Godrej Group, India, said "for logistics support, especially for rural logistics, there is need for FDI. If we can attract international chains to invest in logistics it will be good for India."
Talking about the other factors that would give an impetus to Retail in India, Mr Godrej said, "For modern retail to pick up, the Agriculture Produce Marketing Act needs to be changed. An efficient fresh foods logistics chain will benefit everyone.
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Mr Mukesh D Ambani, Chairman and Managing Director, Reliance Industries, India, said, "The retail revolution, especially in food, offers a huge opportunity to create purchasing power at the bottom of the pyramid. It is important to focus on creating a value chain and large scale local employment."
According to Mr Ambani, the opportunity for retail lay in partnering with the small "kirana stores" and in delivering health, micro credit, education and entertainment to the rural area. While India had an effective last mile in the Kirana Stores, there was need to use technology to remove wastage, he said.
Responding to a question on whether the Retail Revolution would impact the kirana store, Mr Ajay Dua said "it would depend on the location of the hyper and super markets. It is estimated that by 2010, there would at best be 1000 hyper markets and 3000 super markets in India."
If growth takes place in organised trade the small stores would not be adversely affected as consumption would also increase, added the Secretary. With demographics on the positive side in India, the trend is certainly positive for retail growth, said Mr Mohamed A Alabbar, Chairman, Emaar Properties, United Arab Emirates.
Complimenting the Indian government on its effort in creating a conducive environment for retail, he said, "There is no way for India but to open up the retail space. This would help farmers and create employment opportunities. Infrastructure is a critical issue and needs to be resolved for the well being of the nation".
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