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Retail sector's growth under dualism: India's development dilemma

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  • Dutta, Dilip

Abstract

India's retail sector has recently been witnessing a rapid transformation in many aspects of the business by introducing scalable and profitable organized or modern retail models across different categories and, thereby, making way for new formats over the existing unorganized or traditional ones. While the organized retailing refers to trading activities undertaken by licensed retailers who are registered for sales tax, income tax, and routine regulatory checks, the unorganized retailing mostly includes low-cost neighborhood kiranas or mom-and-pop shops, kiosks, street markets, hand-cart and pavement vendors. This coexistence of two types of retailing has given rise to an organizational or institutional dualism in India's retail sector. Because of a perceived threat that small traders will bear the brunt of the organized retail growth by losing their business, the government's current regulatory policy has been very cautious. As a result, the growth of the Indian retail sector as a whole has increasingly become inclusive.

Suggested Citation

  • Dutta, Dilip, 2011. "Retail sector's growth under dualism: India's development dilemma," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 1(1), pages 27-40.
  • Handle: RePEc:gok:ijdcv1:v:1:y:2011:i:1:p:27-40
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    File URL: http://www.worldscientific.com/doi/pdf/10.1142/S2010269011000087
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