Global retail development: India slipped from fifth to fourteenth position
Controls in any process are put in place to curb malpractices and ensure smooth functioning of the process. However unfortunately multiple controls and plethora of orders are hindering the growth of wholesale and retail trade in India. According to the pre-Budget Economic Survey 2013-14, India has slipped to 14th position in the global retail development index last year from the fifth position in 2012.
As per the survey, the trade sector accounted for 15.8 % share in the GDP which is a very good figure. The trade sector that comprises wholesale and retail grew by 4.8 % to Rs 14.79 lakh crore in 2012-13. However the last 2 years were particularly bad for the sector as unfavourable macro-economic conditions and a host of controls have slowed down the growth of the sector.
These unfavourable conditions have given birth to a fragmented market and are hindering the free flow of goods within the economy. Higher transportation cost, lower level of efficiency and productivity, spiralling real estate cost all have added to the slowdown in the sector.
Constant flow of goods and services is an essential pre-requisite for building a common national market. This will keep inflation under control and will help the nation to progress to higher levels of economic efficiency specialisation. Also better infrastructure will ensure that goods are transported to all the parts of the nation seamlessly.
Source- Financial Chronicle
Economic Survey 2013-14, fifth to fourteenth position in retail trade in India, Global retail development, retail trade in India, smooth functioning of the process
