Lucknow, Sep 19 (UNI) The Confederation of Indian Industry (CII), Northern Region, has emphasised the need for a broad based retail policy in Uttar Pradesh to further enhance the economic growth in the state.
In a memorandum to the government, CII state head Sanjeev Chaturvedi said the economy of UP was predominantly agrarian and performance of agriculture and allied activities such as horticulture, animal husbandry, dairying and fisheries are critical in determining the growth rate of the state.
''Only promotion of retail sector will further enhance the growth of these sectors'', he claimed in his memorandum sent to state Cabinet Secretary Shashank Shekhar Singh yesterday.
Mr Singh heads a 15 member committee set up by chief minister Mayawati to decide on the fate of Reliance Retail which had been closed by government on August 23 .
The memorandum further claims that retail sector will promote the use of modern technologies and concepts of business to keep pace with the modern technological developments of the world trade community.
According to the CII estimates, UP, by promoting retail sector, will have an investment of Rs 40,000 crore and will provide about 15-20 lakh employments in the near future.
The memorandum claims that rural debts continuing to plague the rural community through out the rural India due to erratic weather conditions, crop failures and inadequate or non existent irrigation methods. '' Only the favorable retail policy will help the farmers as well as other stakeholders'', the CII claimed.
The retail sector will also help 33 lakhs beneficiaries including farmers and other stakeholders besides it will also create robust supply chain and cold chain to reduce wastage.
The retail sector aims to increase consumption by 6-10 per cent and aims to reduce wastage by 20 per cent.
The retailing industry in India, estimated at Rs 13,44,000 crore in 2005-06 and is expected to grow at a rate of 7 to 8 per cent of Compund Annual Growth Rate (CAGR). Presently the sector is growing at a CAGR of five per cent. Moving forward, organised retailing is projected to grow at the rate of nearly 35 per cent per annum and is estimated to reach Rs 1,20,000 crore by 2010.