This article takes the stand that India will benefit a great deal if the government can encourage organized retailing through proactive policy measures, including opening up of FDI for multi-brand retailing in a phased manner. The author argues that though the growth of organized retailing may lead to some unemployment and displacement in the short term, the long-term benefits will far outweigh the possible negative consequences.

Although there are many important issues pertaining to India's economic development, the subject of organized retailing has attracted considerable attention and controversy in recent times.Looking at current trends in the Indian economy, the spurt in economic activity in almost all fields, encouraging GDP growth rate of 8-9%, and the enthusiasm of the Indian entrepreneur to push the Indian business has led to the conclusion that India will be a major player in the international field in another 15-20 years. However, as of now, in spite of having large resources and intellectual capital, India is lagging behind compared to many other less developed countries and even compared with other Asian countries due to deficiencies in systematic planning, lack of foresight and honest dedication towards development.

India's weak infrastructure and bureaucracy also hinder progress. These problems have also had an impact on organized retail. Exhibit 1 gives a comparative picture of the extent of penetration by organized retail in a number of countries. While organized retailing has flourished in other developing countries like Indonesia, Malaysia, Thailand, etc., India is still quite someway behind.

Globalization has given a chance to consolidate and competition has become fiercer, and countries are looking for bonding the retail success with consumer confidence.

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