'Organised retailing to grow to Rs 2 lakh cr'
Organised retail in India would grow into a Rs 2,00,000-crore business by 2010 in terms of value and generate 10 million to 15 million jobs over the next 5 years.
By TNN |
NEW DELHI: Organised retail in India would grow into a Rs 2,00,000-crore business by 2010 in terms of value and generate 10 million to 15 million jobs over the next 5 years.
According to the India Retail Report 2007, organised retail in India has the potential to generate 2.5 million direct jobs and 10 million more jobs in support activities. The report, compiled by the Indian Retail Forum, was released by commerce & industry minister Kamal Nath on Tuesday.
The retail sector is likely to generate jobs in areas such as contract production and processing, supply chain and logistics, retail real estate development and management. “The phenomenal increase was stemming from the growing purchasing power of the people, which had led to a significant growth in the demand for a variety of goods, both consumables and durables,” the minister stated.
Apart from consumers, farmers will also benefit from the retail expansion, the minister added. He pointed out that several states were allowing retailers direct access to farm produce. “After centuries of economic exploitation, they (farmers) are today dealing directly with companies without the involvement of middlemen or intermediaries,” he said.
Organised retailing, the minister felt, would boost infrastructure growth and create efficient backward linkages. In the process, the sector will also create efficiencies, reducing marketing cost, wastages and redundancies,” he said. Indian retailing is going to be characterised by numerous small retailers and other traders being located in city centres and the large organized retailers coming up in the suburbs of the metropolitan cities, according to the report.
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Highlighting key figures from the report, Amitabh Taneja, chief convenor of India Retail Forum, said that organised sector accounted for Rs 55,000 crore ($12.4 billion) business at current prices in 2006. This share is likely to increase to 4.6% of the total Indian retail value, which stands at Rs 12,00,000 crore ($270 billion).Of the Rs 12,00,000 crore retail market, food & grocery retail is by far the single largest block estimated to be worth a whopping Rs 7,43,900 crore, but the share of organised sector in this business is miniscule. Clothing, textiles and fashion accessories constitute the second largest block, but the largest segment as far organised retailing is concerned is the time-wear sector with nearly 46% share of the segment being organised.
Moving forward, organised retailing is projected to grow at the rate of about 37% in 2007 and 42% in 2008, says the report.
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