India needs a clear-cut policy that supports the co-existence of traditional and organised retail channels, a local economic think-tank has said.
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The Indian Council for Research on International Economic Relations (ICRIER) has estimated that the country’s retail market will grow at 13% a year from US$322bn in 2006-07 to US$590bn in 2011-12.
Organised retail, 4% of total retail in 2006-07, is estimated to grow 45% annually to around 15% of total retail by 2011-12.
“Both unorganized and organized retail are bound not only to coexist but also achieve rapid and sustained growth in the coming years,” ICRIER said in a report released yesterday (27 May).
“The two most important recommendations in my view are: first, for the government to facilitate the emergence of a “private code of conduct” for organised retailers in their transaction with small suppliers; and, second, a simplification of the licensing and permit regime to promote the expansion of organized retail,” said Rajiv Kumar, director and chief executive of ICRIER.
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