Organized Retailing in India: A Short Review

Abstract

Since last many years, there has been rapid growth of organized retailing in India and according to an estimate, it will be worth $170-$190 billion by 2020 as compare to $70-$80 billion currently. In contrast, the unorganized retail sector which employs 95% of the retailers is witnessing a downward trend in terms of industry share, thereby creating a fear of unemployment. So the big question is; is the growth of organized retail in India justified? The concern is what impact it will have on local kirana store, farmers, consumers, commission agents, traders and the economy. In this context, the present study focuses on Indian retail industry and concludes that while there is validity to these concerns, there would be net gain to the society from organized retailing. Further, the paper defines the move that the affected parties take as well as the policy actions the government can implement to resolve the issue amicably.