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Boom in the Retail Sector of India.

India is said to be the second most attractive destination for Retail business among the thirty emerging markets globally.  Retailing is the last stage of Distribution process, 
where an interface is createdbetween the producer and the Individual consumer for personal consumption. Post-Liberalization period, Indian retail industry is growing at a rate of 30% per annum and provides has huge employment opportunities.   There is been an constant increase in the share of big players in the organized retail market, but still unorganized sector dominates with 96.5% share in the Retail Industry.
Organized sector are those, which carries the trading activities by licensed retailers which includes Branded stores, Specialty Stores, Supermarkets, Hyper mart, Shopping malls etc. On the other hand, unorganized sector consist of the traditional shops like Kirana stores, Convenience stores, general stores etc.
Retail sector is said to be the fastest growing sector in the Indian economy and India’s retail sector is the ninth largest retail market in the world, where the huge middle class population is attracting the global players to enter in to the country, and a 25% growth is expected in the organized sector annually.  There is been a growth of about 50-60% in small town and 35-40% in the large cities inorganized sector. The rising income levels, a rise in retailing through online shopping and global exposure has helped the leading industrial houses to enter into this market to serve the needs of the consumer.
A boom in the retail sector has helped the new players to explore new markets, but still huge challenges are faced.  The government has limited the Foreign Direct Investment (FDI) for 51% in the field of retail for any Single brand in a view to protect the small scale retailers and even delaying the FDI approvalsDue to this in the long run, it would affect the opportunities and Technological Innovations. The tax system in India differs from one state to another, which is forcing the organized sector to restrict them in expanding their business. A Uniform central tax system would be an ideal solution to get rid of this hindrance.
Another huge challenge faced by the organized retail sector is the lack of government initiatives is amendments in Labor Laws, Tenancy legislation etc. The Labor laws should be relaxed, where it’sdifficult to manage employees in the operations. A special clearance should be taken for extended working hours.  Laws pertaining to restriction of Inter-state flow of goods should be eased and the clearance of licenses and other regulations should be done quickly.
There is been an huge opportunities and challenges faced by the Organized retail in terms of Competition, government tax and FDI restriction,  and a huge domination from Unorganized sector.  In spite of that a huge transformation is witnessed in growth. Huge population and untapped retail industry has attracted the global retail giants to enter the market where the sector is expected to grow by 25% annually.


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