Speaking at the CII National Retail Summit in the capital today, Mr Suresh Prabhu, Minister of Commerce and Industry, said: “We are in the process of identifying retail as a greater growth sector. If you look at India’s growth potential in all sectors of the economy - Services, agricultural and manufacturing– Retail sector will play a key role in the growth of all. All sectors will depend on retail to take its agenda forward. Growth in retail will spur economic activity not in the sector alone but also in creating opportunities in many others including agriculture, manufacturing and services.
Mr Prabhu said that there was immense opportunity in the Retail Sector to create downstream and upstream opportunities; to create linkages between various sectors such as manufacturing, agriculture and services to create jobs and contribute to the country’s GDP. “Inclusive growth by taking the society along and other entrepreneurs will be the real game-changer for the retail sector,” he said. The Minister also released the CII-JLL Report – Fuelling the Retail Revolution – The Paradigm of Emerging Cities.
Mr Prabhu also added, “The country has come far from the days when the retail trade ownership was at the hands of private players and the government hardly had any role in it. Speaking on the proactive role played by government today in initiatives for the retail sector, he added, "However, today we are trying to adopt a policy which will create an ecosystem where retail will not only reach our masses but also create opportunity for jobs and contribute to the economy. Win-win partnership for those who are already in the business and those entering with huge capital is what will boost the sector.”
Eulogising E-commerce as a game-changer that will add a new dimension to the Retail Sector, Mr Prabhu said, “Millions of jobs and opportunity will be created in E-commerce and the real challenge lies in capturing changing customer choice and thinking.” The Government has planned last mile connectivity which will provide mobile connectivity to all corners of the country. Shri Prabhu said that the Ministry plans to provide poor craftsmen with E-commerce platform which will give them a virtual marketplace.
“We should all come together to bring out the true potential of the Indian Retail sector. The retail sector too has to work keeping in mind the society,” the Commerce Minister said.
Speaking at the Summit, Mr Chandrajit Banerjee, Director General, CII, said: “The CII National Committee was formed a decade ago. The Committee has mooted for the formulation of a strong and modern National policy on Retail and has been liaising with the government for a regulatory framework for the Indian Retail Industry. The Committee has been working towards greater engagement with policy makers and advocating further reforms to the Government and regulators to provide an enabling environment for further growth and creating a robust standards ecosystem and conformity assessment platform. Our focus is to develop a competitiveness road map implementation plan and scan, monitor and assess the impact of changes in regulations and policies.”
Mr Banerjee added: “Today, Indian Retail sector is gradually inching its way towards becoming the next boom industry. It has come forth as one of the most dynamic and fast paced industries with several players entering the market. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities are going to be the key factors in the growth of the organized Retail sector in India.”
Talking about the CII-JLL Report, Mr Pankaj Renjhen, MD, Retail Services, JLL, said: “India’s economic potential lies in the growth of smaller cities that have been witnessing transformation on all fronts – urban housing, infrastructure, offices and retail real estate. Being a key component of this development, retail has the ability to drive future growth and add value to the overall infrastructure of these cities. While there is an opportunity in Tier 2 and 3 cities for this sector, a strong focus is required to build the necessary infrastructure to support the growth. Through our National Retail Summit 2017 and the release of an insightful report, we aim to identify the challenges that may impede the growth and leverage the available opportunities.”
Over the last 20 years, India’s retail sector has been witness to a tectonic shift. From an unorganized market, primarily ruled by Kirana shops, it now boasts of large multiformats that offer global experiences to local consumers. The government’s initiatives in promulgating retail in terms of economic and tax reforms, the country’s high economic growth and strong positioning as an investment hub; improving market sentiments, urbanization, burgeoning e-commerce and digitization are driving one of the key sectors of the Indian economy – the Retail sector.
1 December 2017
New Delhi