The retail and wholesale sector in India is one of the largest sectors, contributing 14 percent to the national Gross Domestic Product (GDP) and 10 percent to formal employment. The sector has also shown strong growth in recent years, with a compounded annual growth rate of over 8 percent during 2000-2006 (at constant prices) compared with 7 percent for the national GDP. This note uses enterprise surveys' data on 1,948 retail stores in 41 large cities of India to highlight key problems and policy issues. This note highlights the key obstacles and problems faced by Indian retailers and how the severity of the obstacles varies across rich and poor states and small and large stores. Inadequate power supply, poor access to finance, and high corruption are the three most pressing problems. The note also sheds light on the low level of competition in the sector and its consequences for the efficiency of retail stores.
Detalhes
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Autor
Amin, Mohammad
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Data do documento
2010/01/01
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TIpo de documento
Informativo
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No. do relatório
60346
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2011/03/22
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Disclosure Status
Disclosed
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Nome do documento
Challenges of retailing in India
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Palavras-chave
power outage;access to finance;power supply;floor area;retail store;finance and infrastructure;supply of electricity;gross domestic product;pattern of development;per capita income;business environment issues;annual sale;metropolitan city;labor productivity;retained earnings;consumer durable;Retail Sector;retail activity;bribe payment;registration process;horizontal axis;tax rate;state control;Labor Law;macro instability;severe problems;scatter plot;macro level;land reform;international standard;fixed effect;negative relationship;small cities;data limitation;external financing;substantial variation;constant price;single owner;high tax;national gdp;metropolitan finance;Grocery Store;policy uncertainty;court functions;skill shortage;manufacturing sector;high corruption;binding constraint;ownership titles;present evidence;
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