The Hindu Business Line : 'Need for national marketing policy'

THERE is a need for a national marketing policy as retail accounts for 11 per cent of the country's GDP, said Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

Mr Dua was addressing a session on `The Indian Retail Industry: David Versus Goliath?' at the India Economic Summit 2005, jointly organised by the World Economic Forum and the CII.

"India has a national policy for manufacturing, agriculture and tourism. There is now need for a national marketing policy," he said.

There are a number of factors to be considered while formulating a policy — wholesale vs retail, rural vs urban, lifestyle goods vs basic goods and organised vs unorganised marketing. There is need for a holistic view of marketing as part of the entire exercise, said the Secretary.

Mr Dua said the issue in retail is not about foreign direct investment (FDI) but is much wider. Retailing in the country is worth Rs 30,000 crore, which is much larger than retail's share in the GDP of most countries. "Organised marketing in India is growing at 18-20 per cent and has given a boost to real estate. It has, however, not helped rural marketing, supply chains, consumption and purchases by tourists. Malls have not gone into ethnic goods either. There is a need to have a macro perspective," he said.

Mr Sanjiv Goenka, Vice-Chairman, RPG Enterprises, India, said the challenges for achieving critical mass and generating employment in retail relate to integration of small and big retail, integration of rural and urban markets, and integration of supply chains for a unified market. The question is about FDI in retail; there are concerns that it will create monopolies.

Mr Kishore Biyani, Managing Director, Pantaloon Retail, said FDI has to be allowed sooner or later. India is the last leg of the big consumer base and retail is the last leg of any business value chain. However, he said FDI in retail should be delayed.

Mr B. S. Nagesh, Managing Director and Chief Executive Officer, Shoppers' Stop, India, said the issue of foreign retailers is being confused with FDI. If foreign brands are allowed to manufacture in India, they should be allowed to retail too.

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