The Hindu Business Line : Grant industry status to retail: FICCI

New Delhi April 22 To help the retail sector achieve a turnover of $430 billion by 2010, industry chamber FICCI has demanded grant of industry status to retail, apart from allowing foreign direct investment in the sector.

For a quantum jump in the choice of products and an array of formats for the discerning consumers, it is imperative to have the right mix of a package to boost the competitiveness of the sector. This would include honing the skills of retail personnel, induction of modern technology and effective implementation of the rules and regulations governing the sector, according to the chamber.

In a report on the retail sector, the chamber says that 92 per cent of the projected investments are slated for urban areas and eight per cent for rural India. Of the urban investments, a large share is slated for the hypermarket (38 per cent) and supermarket (21 per cent) formats, while 62 per cent of urban investments are expected to go to A-type or above cities.

Industry status to the sector would help in garnering greater focus ondevelopment and fiscal incentives for retail. It would also help in availability of organised financing and establishment of insurance norms, according to the chamber.

It is also important that inter-State levies should be abolished and uniform VAT introduced in all States at the earliest, FICCI said.

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