Organised and unorganised retail segments can coexist and grow together

www.indiaretailbiz.com October 7th, 2008

"It is quite possible for both the organised and unorganised sector retailers to co-exist and flourish," said Rakesh Kacker, Additional Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution. He was speaking to IANS on the sidelines of an international retail summit recently held in New Delhi."India has a huge potential for growth in retailing sector. It is picking up at a reasonable pace. The organised and unorganised retail sectors will go from strength to strength together," added Kacker.

The government is keen to see the entire retail business to grow without any adverse impact on the unorganised sector.

"Whatever problems the unorganised sector retailers are facing today need to be articulated and should be addressed. The government will be more than happy to work with trade bodies to ensure that dynamism in the unorganised sector remains intact," said Kacker.

A study recently done by trade organisation Assocham (Associated Chamber of Commerce and Industry of India and KPMG has projected retail business, both organised and unorganised, to reach $416 billion by 2010. The study has estimated an annual growth rate of eight per cent on 2008 market estimate of $353 billion.

The organised retail, according to this study, however, will grow at a much faster pace of 40 per cent to reach $51 billion by 2010. This will mean a share of over 12 per cent against current market share of seven percent for organised sector.

India Retail Report prepared by Images F&R - a private research firm - and Confederation of Indian Industry (CII), on the othert hand, has estimated domestic retail market to touch $402 billion (or, Rs.18.1 lakh crore) by 2010.