Retail Ecosystem in India—An Overview of the Regulatory Framework and the Emerging Paradigm

Abstract

Indian retail sector has been a strong area of interest and discussion both within and outside India for a number of reasons. India has the highest retail density in the world dominated by small retail outlets, which many call as “mom & pop” stores. But the sector of late has been undergoing a major transformation in terms of its structure and scale. Slowly and steadily, the big players have been entering in this field and the sector is evolving into organized shape and structure. The Indian retail sector has been categorized as the top player among the developing country markets in terms of future growth potential. This has created strong interest am ong big retail players of the world in the Indian retail sector but at the same time has created anxieties and fears in the minds of small Indian retailers. In this context, the regulatory environment for this sector is evolving and has a lot of challenges in hand in terms of how to balance the interests of both small and large players as well as organized and un-organized players. The study is based on an extensive survey of literature, industry reports, and field survey of small retailers. Drawing upon the analysis of primary and secondary data, the study highlights the issues facing the sector and comes out with some pertinent policy recommendations.