Organized retail trading can play an important role in rural development in India. India's economy and population are still largely agrarian, with around two-thirds of the population depending directly on agriculture. While agriculture's share of GDP has fallen, non-farm activities like retailing have expanded significantly in rural areas in recent decades. Organized retail is one of India's fastest growing economic sectors and has the potential to provide widespread employment. Major companies have established urban retail operations and are now moving into rural markets, where over half of consumer sales already occur. The expansion of organized rural retail can benefit both retailers and farmers by improving rural infrastructure, technology, literacy and incomes - leading to more comprehensive rural development.
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Abstract -Role of Organized Retail Trading in Rural Development of India
Organized retail trading can play an important role in rural development in India. India's economy and population are still largely agrarian, with around two-thirds of the population depending directly on agriculture. While agriculture's share of GDP has fallen, non-farm activities like retailing have expanded significantly in rural areas in recent decades. Organized retail is one of India's fastest growing economic sectors and has the potential to provide widespread employment. Major companies have established urban retail operations and are now moving into rural markets, where over half of consumer sales already occur. The expansion of organized rural retail can benefit both retailers and farmers by improving rural infrastructure, technology, literacy and incomes - leading to more comprehensive rural development.
Organized retail trading can play an important role in rural development in India. India's economy and population are still largely agrarian, with around two-thirds of the population depending directly on agriculture. While agriculture's share of GDP has fallen, non-farm activities like retailing have expanded significantly in rural areas in recent decades. Organized retail is one of India's fastest growing economic sectors and has the potential to provide widespread employment. Major companies have established urban retail operations and are now moving into rural markets, where over half of consumer sales already occur. The expansion of organized rural retail can benefit both retailers and farmers by improving rural infrastructure, technology, literacy and incomes - leading to more comprehensive rural development.
Role of Organized Retail Trading in Rural Development of India
Dr. Deepa Rawat * , Deepti **
The Indian economy is basically an agrarian economy. Although, the share of agriculture and allied services in the GDP has come down to 14.6 in 2009-10,the dependence of nearly two third of the population directly on agriculture makes this sector important in terms of employment and income generation. Agricultural activities are mostly rural based, as such the overall development of rural areas is crucial for the development of agriculture, in particular and GDP in general. Although, the overall average annual growth rate of agriculture and allied activities has remained about 2.9 per cent during 1991-2009, non-farm activities have expanded many folds in rural areas. Retailing is an important non-farm activity that is expected to increase at a very fast pace in the coming years due to continuous surge in the demand in agriculture inputs and consumer products. It is one of the sunrise sectors of the economy and is expected to yield high returns and provide employment to a large number of people in the future in both urban and rural areas. Indian companies as well as some major multinationals have established themselves in urban areas and some are penetrating into rural areas to tap the high potential in terms of sales in the market. Indian retail market is the fifth largest retail destination globally. It is estimated to grow from $427 billion in 2010 to $637 billion in 2015. Although the share of organised retailing is only 4 to 5 percent with the rest 94-95 percent in the unorganised sector, the organized sector is expected to grow at the rate of 25 percent per annum and is estimated to reach `100000 crore in 2010. Besides the changing scenario in urban areas, the rural landscape in also changing fast. The rural population dominates the Indian market with over 742 million consumers spread across 0.63 million villages. 53 percent FMCG and 59 percent durables sales come from rural India. Moreover there has been an increase in the rural
* Associate Professor & Head, Department of Economics Agra College, Agra. ** Research scholar, Department of Economics Agra College, Agra. income in the last few years due to higher agricultural production, agricultural loan waiver scheme, NREGA, Bharat Nirman etc.,all these add up to great opportunity for the organized retailers in rural markets. All the rural retailing initiatives like Hariyali Kisaan Bazar, TKK, Shakti etc. are not only being developed as consumer markets but they are also being developed as a cost effective supply chain to bring down the transaction costs. The expansion of organised rural retailing will benefit both the retailers as well as the farmers, as it will bring about a change in the rural environment. Improvement in rural infrastructure, better roads and an efficient transport system, technological up gradation, increase in literacy, awareness of rural people, development of communication system through phones, internet etc., increase in agricultural productivity, more disposable incomes etc. are some of the positive changes that will occur in unison with expansion of rural retailing. This is turn will lead to all round rural development.