Retail Industry in India

Retail industry in India

Retail Industry in India is dividing into two sectors: Organized and Unorganized sectors. In Organized retailing, licensed retailers do trading activities; they are those who are liable to pay sales tax, income tax etc. Hypermarket and supermarkets are the perfect examples of licensed corporate retail chains, which owned by private retail businesses; these retail chains falls under the category of organized retailing. Unorganized retailers are non- licensed retailers; traditional; it refers to the traditional form of low cost retailing for e.g. Shops like Grocery (KIRANA) Shops, Cigarette or Pan Bede shops, convenience stores, hand-cart and pavement vendors etc.

Indian retail sector is growing largely day-by-day. The annual growth rate of the Indian retail sector in last three years has grown up to 46.64%. Which means retail is the fastest growing sector in the Indian Economy. Traditional markets are also improving their services as well as becoming organized. They are changing themselves into licensed retailers as well as making ways for hypermarkets, departmental stores, and super markets. Western style malls has already made place for themselves in Indian market.

Ninety Seven percent of the Indian Retail Businesses is run by unorganized sector. The organized retail however is still developing though attempts are been made to increase its proportion to 9-10% by the year 2010 bringing in a huge opportunity from the prospective of new players. The sector is been considered as a largest source of employment for the rural mass after agriculture and has a deep penetration into rural India generating more than 10 % of India’s GDP.