Organised retail out-competes traditional retail on prices, variety and quality and offers greater convenience, he said.
Rangarajan, however, sought to allay apprehensions over the government move to allow FDI in multi-brand retail, saying that kirana stores will survive and can become part of modern retail by organising themselves and getting assimilated into the organised sector.
Rangarajan's comments come a day after the government notified its last week's decision to allow 51 per cent FDI in multi-brand retail despite widespread political opposition.
"Once the share of overall modern retail in food reaches about 25 to 30 per cent, it is bound to affect the kirana traders first and then the small and marginal traders," Rangarajan said in his inaugural address at a seminar on 'Organised Retailing Vis-