Growth of Retail in India : Boon or Bane?

Organised Retail in India has been growing drastically. Modern retail in India could be worth US $175-200 billion by 2016.

But the unorganised retail sector, which employs 96% of the retailers is declining, creating more unemployment.

So, the big question is, is the growth of organised retail in India a boon or bane?

Do comment.

Originally posted by: shriyaroxxx

Organised Retail in India has been growing drastically. Modern retail in India could be worth US $175-200 billion by 2016.

But the unorganised retail sector, which employs 96% of the retailers is declining, creating more unemployment.

So, the big question is, is the growth of organised retail in India a boon or bane?

Do comment.

I believe the same or even more number of employees get employment in this new retail sector.... here i cd see that a book store has more than 10 employees.... while in unorganised its a family looking after it.... but still considering the population, it can be a bane...

education is the key... now the khandani dukaandar would tell children to be educated enough atleast... the textile retailers will be the most hit people... some people with money power cd still take places in shopping malls and sell... the only hit will be the people who dont have money to hire places in shopping malls.... but believe me.... most people in thailand too buy from small retailers as they cant afford shopping malls.... infact i see here 12 months sale in shopping malls... 😊

Originally posted by: shriyaroxxx

Organised Retail in India has been growing drastically. Modern retail in India could be worth US $175-200 billion by 2016.

But the unorganised retail sector, which employs 96% of the retailers is declining, creating more unemployment.

So, the big question is, is the growth of organised retail in India a boon or bane?

Do comment.

The choice lies with the consumers ain't it. What'll the consumers like, to buy something at a lower cost from a large retailer who can afford it because of bulk purchase or pay more for the same thing just to keep alive the concept of kirana store.

Originally posted by: lighthouse

Good point Sareg about the Walmart... However I would say that given the choice , most people prefer to shop at Walmart then mom/pop store. For consumers it is choice between High Street shopping vs mall shopping but as far as tax revenue goes for the local govt, Big Box stores pay much much more then boutique stores do.

just wanted to add, walmart is not a matter of choice in certain places, especially in remote or subrub places. people have no choice but to shop there. its quite saddening how they treat their employers.

Originally posted by: sareg

Very nice topic

For the consumer it is a boon, however for the society in general it becomes a bane. Overall it turns out to be a curse

Take for example Walmart in US

wherever Walmart opens up, it kind of kills the local mom/pop shops, shops where local variety of the products are sold. Instead Walmart the chain imports stuff from China, which is about 1/3 the local cost, after a period of time the local supplier closes shop

When the local supplier closes shop(say for manufacturing clothing line), more people become unemployed, Those same unemployed people will look to buy cheap stuff, that kills other local suppliers(like electronics) in other areas

Yes the consumer keeps buying cheap stuff, but standard of living of the entire community drops, the unemployment grows

Can India afford it?

Free-market economy is good, but this is one I prefer more regulatory controls, controls that are better than the American economy

Here is a discussion

Is Walmart good for India by PBS/frontline. they generally are mostly unbaised analyzers

http://www.pbs.org/wgbh/pages/frontline/shows/walmart/view/