However the report pointed out that the adverse impact weakens over time. The study was undertaken by Icrier for the Department of Industrial Promotion(DIPP) and Policy, Ministry of Commerce.
The study says that both consumers and farmers benefit from organised retailers . The low income consumers save more from purchases from organised retailers. The report explains that the farmers benefit from organised retailers because they have the option to sell directly to organised retailers. Also there is no evidence of decline in the overall employment in the unorganised sector as a result of the entry of the organised retailers, the report adds.
The report says that unorganised retail business is likely to grow at 10 percent per annum from $ 309 billion in 2006-07 to $496 billion in 2011-12. The report also adds that the unorganised retailer will not be able to meet its growing demand and hence the share of organised retail is going to increase at a rate of 45-50 per cent per annum.
The report says that the organised retail which currently contributes around 4 per cent of total retail sector (annual sales $ 322 billion in 2006-07) is likely to grow at much faster pace to increase its share of total retail trade to 16 per cent by 2011-12( annual sales of 496 billion by the that year).
One of the major recommendations of the report is to facilitate