Getting real about retail

Given how allowing 51% FDI in multi-brand retail is one of the biggest reform measures the government has taken in a long time (the Pension Bill needs Parliament’s approval), it would be a pity if a Mamata Banerjee is allowed to scuttle it. Since the pressure to retract will mount, including from a series of strikes by kirana owners, it’s a good idea to debunk some myths.Take the kiranas-will-die one first. If Indian GDP grows 15% a year, that takes GDP from $1.8tn today to around $7.3tn in a decade; that takes the share of retail from $470bn today to $1.9tn. If, as projected, the share of organised retail grows from 6% today to 20%, that still leaves enough room for kiranas to grow at over 13% a year. 

Read Full Story>>