Encourage retail for spurring growth: PHDCCI

The Uttar Pradesh chapter of the PHDCCI has asked the state government to formulate a policy encouraging organised retail in the state to spur growth.

In a representation to the state government addressed to the cabinet secretary, Shashank Shekhar Singh, the PHDCCI said, "India has seen phenomenal growth of organised retail in the past few months. This growth is not limited to any specific product line and includes opening up of large stores offering electronic goods to fresh fruits and vegetables."

The industry body pointed out that a large number of business houses like Tata, Bharti and Reliance have seen this as a great opportunity to diversify and have already started operations in this area.

"Global giants such as Wal-Mart are just at our doorsteps waiting for the Centre's orders." It also pointed out that the education institutions are also a part of this process, which is evident from the fact that management institutions have already launched courses in retail management. "In other words, India has accepted organised retail as a reality."

Referring to the state, the industry body said that the state had abundant capacity to expand in the field of organised retail. "This will naturally require an attractive retail policy for welcoming the major business-houses not only from other states but also from the world over," the PHDCCI said.

"This is the time to welcome businessmen in UP," it said, highlighting various aspects that would ensure economic growth and prove beneficial to the state and its residents.

The retail sector translates into quick development of the state with minimum government investment and there is huge public support due to visible benefits of costs and quality to the consumer, the PHDCCI said.

Moreover, the industry body highlighted the obvious benefit to the farmers who are assured of better prices for their produce.

The organised retail sector, as stated in the letter, also means abundant employment opportunities with little training efforts and increased revenue for the state from taxes due to transparency in business. Besides, the sector will also ensure an improved lifestyle for the public comparable to developed states.

The PHDCCI letter said that "resistance is natural response to every change". "The interests of middlemen that account for less than one per cent of the society can be taken care of by suitably blending their services into the new arrangement," it suggested.

The PHDCCI also provided the UP government with an independent study on retail, which highlights the positive impact of organised retail on the economy of the state as well as the quantum of employment generation to farmers and consumers in detail.