Indian retail to fuel future growth

MUMBAI: The giant strides made by Indian retailers in generating growth and employment opportunities was appreciated by Subodh Kant Sahai, minister of state for food processing industries, Government of India.

Addressing at the CII's National Retail Summit 2006 in Mumbai, he also emphasized the need for upgrading rural retail and agri business markets as Indian retail surges ahead

The CII-AT Kearney Retail Report, released by the minister highlights key challenges pertaining to the retail sector at regional and state levels, assessed against national and global best practices.

The study categorises concern areas into generic Indian industry specific issues and those specific to the retail sector. An analysis of case studies from countries like China and South Africa highlight the catalytic role that regulatory bodies can play in promoting retail.

Actionable recommendations both at the centre – state government levels, and initiatives specific to the retail industry have been pin pointed, to foster accelerated growth of the sector.

While government initiatives are called for to grant industry status to retail, amend labour laws, phasing out of octroi and entry tax, retail sector initiatives are called for on issues relating to investment in HR management, and supply chain development.

The Study also advocates the need for the development of a Consumer Confidence Index like in the US, Brazil and China which would be a useful instrument for tracking consumer insights. The onus of this, rests with the retail segment, it points out.

During his Special Address at the Summit, Leonard J Edward, deputy minister of agriculture & agri food, Government of Canada stressed upon the manifold gains which India and Canada could derive from heightened bilateral cooperation particularly in the field of agri food business sector. This would have a favourable impact on retail. He also mentioned that a MOU was due to be signed between the two countries for collaboration in agriculture and agri food sector through exchange of scientific knowledge, research and innovation, among others.

Kishore Biyani, chairman CII National Retail Summit 2006 and Group CEO Future Group stressed the importance of consumption led growth for the retail sector and categorically stated that Indian Retail it could be said, had “arrived”. Opening of retail stores no longer constituted “news”. News was now being spurred by conglomerates entering the sector.

Seshashayee, president CII, observed that the huge retail market in India also required immense credit support. Credit agencies could play a major role in this context. He also emphasized that innovation needs to be driven into Indian industry to fuel the retail boom. Revolutions in supply chain were required along with productivity improvements.

CIOL Bureau