India's retail trade to touch $590 bn in 2011-12: Scindia

India's retail business, the second largest employer after agriculture, is estimated to touch $590 billion in two years, Parliament was informed today.     

"The retail trade is estimated to grow at 13 per cent per annum from $322 billion in 2006-07 to $590 billion in 2011-12," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Lok Sabha.    

The share of organised retail in total retail has grown from 3.3 per cent in 2003-04 to 4.1 per cent 2006-07.    

Replying to the query on FDI in the country's retail market, Scindia said there was no proposal to change the foreign direct investment (FDI) policy in the sector.     

"Government also fully recognises the need to ensure that small retailers are not adversely affected by the growing organised retail and that there is no adverse effect on employment," he added.     

A Parliamentary Standing Committee on Commerce has recommended a blanket ban on entering of domestic and foreign players into the retail trade.     

FDI is prohibited in retail trading except for single brand, where 51 per cent foreign investment is permitted.     

Foreign investment up to 100 per cent is permitted under the automatic route in wholesale cash and carry trading.