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For this to happen, the government will have to bring about the required liberalisation in the retail sector, if India is to ever become a developed economy. Historically, the Indian retail sector has been dominated by small independent players such as traditional, small local panwalas (grocery stores) and others.
Recently organized, multi-outlet retail concept has gained acceptance and has since then accelerated.

All major global players such as Wal-Mart, Tesco, Sainburys and others are keen to enter the Indian retail market. A T Kearney ranked India 5th out of 30 most attractive retail markets in terms of investment.

Recently the Indian government has hinted towards taking the necessary steps to liberalize the retail market in India. However, there are concerns being expressed by the protectionists in and outside the government.

In my opinion, the time is just right for the government to push for the liberalisation of the retail sector in India. If they are sincere about making India a developed economy, the government should not miss this opportunity to create millions of jobs throughout India, not to mention the boost to its overall GDP.

What should the Govt do?

There are numerous ways the government can please the protectionist and bring about the liberalisation.

I think the licensing approach might be a good way forward. The license should be divided into three different categories: -

Local, regional and national.

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* Contributed by -
Sanjeev Kumar is CEO of Delamore & Owl Group of Companies and the Managing Director of Delamore Consulting Ltd.
He holds dual master's degrees: one in Business Administration and another in International Finance. He has been the 2002 recipient of the "Southeast Asia Young Achiever's Award".