PwC study says FDI in retail will bring 8 m jobs

New Delhi, Nov 23 | Updated: Nov 24 2005, 05:30am hrs
Increased employment, efficiency in agriculture and increased exports through sourcing from India are the three most significant benefits of modern trade, a study by CII and PricewaterhouseCoopers has said.

According to the studyThe Rising Elephant: Benefits of modern trade to Indian economybased on various reports envisaged on the levels of investment, an additional 8 million jobs will be generated in India through direct and indirect employment through the development of organised retail.

Commenting on the findings of the study, PwC partner Jaques-Etienne de TSerclaes, global retail and consumer leader, said, By 2020 India will have the lead in this sector. The demographics of the country is such that nothing can stop it from becoming the leader.

Allaying the fears of FDI in retail creating unemployment by wiping out kirana stores, the study said only those working in one lakh mid-category stores were likely to be displaced in the mid-term as against the assumed workforce working in 12 million retailers across the country.

RETAIL FINDINGS
Only those working in one lakh mid-category stores are likely to be displaced in the mid-term
Organised retailing would result in increased efficiency in the agricultural sector
In the long run, the metamorphosis of this sector will lead to the redeployment of this workforce also, it said.

TSerclaes, however, said unless India allows FDI in retail it would not even be on the radar of potential investors.

CII national retailing committee member Krish Iyer said organised retailing in India is expected to touch Rs 1,10,000 crore by 2010.