The Hindu Business Line : ICRIER report on organised retail likely by July 15

New Delhi, March 12 The Commerce Ministry mandated ICRIER study to assess the impact of transnational retailers on mom and pop stores is likely to be ready by July 15.

The Indian Council for Research on International Economic Relations (ICRIER) is carrying out the study on organised retail, focusing on its effects on small retailers and vendors in the unorganised sector.

The parameters include organised retail’s impact on employment, consumers, farmers, manufacturers and on pricing.

Till the study is complete, the recommendation to allow 51 per cent foreign direct investment in niche retail sectors such as consumer electronics and sports goods has been put on hold.

The Prime Minister’s Office (PMO) had directed the Department of Industrial Policy and Promotion under the Commerce Ministry to conduct an impact study in early February.

The survey is being carried out among consumers, retailers, and malls across India in two phases.

First phase

In the first phase, the study will be conducted in 20 cities that already have malls.

In the final phase, the ICRIER will study the response of small shops and consumers in cities where organised retail is at an early stage.

Technopak will be assisting ICRIER in the study.

Researched reports indicate that as much as $35 billion will be invested in the Indian retail sector alone in the next five years.

Retail market

The domestic retail market is expected to grow from $336 billion in 2006 to $590 billion in 2011.

Assuming that the share of modern retail grows from the current level of four per cent to the estimated 16 per cent in the next five years, the absolute market size of traditional retail will also grow from $324 billion in 2006 to $493 billion in 2011.

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