Q) Research and write a short note of 500 words on the economic significance of retailing in your state.

Ans) Retailing is a set of business activities that adds value to the products and services sold to consumers for their personal or family use. Basically retailing is the part of the distribution channel in the four P’s of marketing.

Retailing, one of the largest sectors in the global economy, has become the most active and attractive sector of the last decade. While the retailing industry itself has been present through history in our country, it is only the recent past that has witnessed so much dynamism.

It is going through a transition phase not only in India but the world over. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna

Bazaar), convenience stores (ConveniO, HP Speedmart) and fast-food chains (McDonalds, Dominos).

It is the non-food segment, however that foray has been made into a variety of new sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus, LifeStyle, Westside), apparel/accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld, Crosswords, Landmark), appliances and consumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo).

A number of reasons have lead to this exponential growth of retailing in India and this growth in turn, is heading the country towards development. India's strong economic growth and rising disposable incomes of middle class and lower middle class made big business houses venture in to this business, and many businesses are coming from US and Europe. The Government's decision to allow foreign Direct Investment and businesses in to this sector has attracted foreign companies to establish their businesses in India. Now foreign retailers will be able to own their own stores in India for the first time as part of a major government liberalization of business. Till 2006 foreign companies were allowed to operate franchises by the government to protect the indigenous companies. Now new regulations may allow foreign companies to hold up to 100%. But the Indian government is going ahead with new reforms which may create millions of job in the near future while safeguarding the interest of domestic firms.The increase in the land value and number of real estate companies investing in this field has also helped power the boom as financing is made easier.

The economic significance of retailing is huge and in a developing country like India it cannot be ignored.

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph

India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 350 billion, of which organized retailing (i.e. modern trade) makes

up 3 percent or US$ 10.5 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn

up by AT Kearney. Retailing in India employs around 17% of population and promises to employ more in the

near future

Urban Employment :-  Employment opportunities for youth, According to PricewaterhouseCoopers (PwC) it is said that retailing will create additional eight million jobs though retailing In India and  will benefit population by employing local (Urban) youth and others directly or indirectly.

Rural Employment : - Contract Farming is the new mantra of organized retailing in India. There is no doubt that the farmers are in some way benefited by contract faming where in, the latest technology and equipment and scientific farming is done by farmers with the help of retailers there by increasing the productivity in agriculture, and uniform payment for their produce throughout the crop irrespective of  fluctuations in market price.

Retailing initiates Management training opportunities and Entrepreneurial opportunities

The extraordinary role played by retail sector throughout the world in increasing productivity of consumer goods and services are commendable. And it is also becoming a major industry by creating millions of employment opportunities to people directly and indirectly is greatly admired. Retailing industry becoming one of the most dynamic sectors in India with numerous players jumping into this market makes it competitive and lucrative. Though organized retail sector is serving the needs and aspirations of high end and middle class customers but ignoring the common man's needs and aspirations are lamentable. So, the organized sector should look at the common mans needs, and his ability, affordability and go ahead, then only the aim of giving world class quality products at affordable prices to common man dream will come true, thereby contribution to the economic growth and up lifting the standard of living there by serving humanity.