Retail industry to surge 20 pc in 3 yrs

New Delhi, Apr 22: In another three years the organised segment of the burgeoning Indian retail industry will be the fastest growing sector at 20 per cent, according to an industry chamber.

Presently, the organised retail growing at four per cent has a 60-billion-dollar market which is expected to soar to 90 billion dollars by 2010.

A FICCI report on 'Organised Retail: Unfinished Agenda and the Challenges Ahead' calls for imparting industry status to retail, permitting FDI, simplifying tax structure, employment of skilled personnel, a planned move towards one common market and putting a check on counterfeiting.

It says, 92 per cent of the investments are for urban India and eight per cent for rural area. Of the urban investments, quantum share is slated for hypermarket at 38 per cent and 21 per cent for supermarket.

FICCI Secretary-General Amit Mitra said the biggest impediment to the growth of retail is the lack of skilled personnel.

Dr Mitra suggested the introduction of intense retail training programmes in the IITs, Polytechnics, 10+2, and at the university level.

The rise in the disposable income of the Indian consumer is driving the retail revolution which has witnessed a phenomenal growth, he said.

He said employment was the front line area for India's growth and the retail, comprising over 13 million outlets, was likely to provide jobs to over 18 million people, the largest employment after agriculture.

Dr Mitra also emphasised the need for infrastructure planning in roads and ports through public private partnership.

The report also talks about making the country ''one common market'', abolishing VAT and CST and abolishing the archaic laws and regulations.

Rationalising the different taxes imposed on the retailers and slashing the excise duty from 16 per cent to 14 per cent would also lead to this sector's growth, the report added.

UNI