The recent orders by the Uttar Pradesh Government on Retail sector will have adverse impact on the pace of inclusive growth of India, said the Confederation of India Industry (CII).
Modern Large-Format retail, efficiently connects the producers and the consumers and is beneficial to both in the long run. In India there is a huge wastage of fresh fruits and vegetables – between 24% to 40% of the total produce.
In this scenario, the Large-Format Retail provide the all important infrastructure to carry the farm produce to the consumers with lower wastage. In this process the farmers get better returns and the consumer better quality and price.
The Uttar Pradesh Government's move will be detrimental on several grounds – lower returns for farmers, higher prices for consumers, reduced job opportunities and erode investor confidence, says CII. CII appealed to the Uttar Pradesh Government to reconsider the decision.
Modern Retail facilitates inclusive growth. Several other sectors grow, including the agricultural sector, along with the growth of the Retail Sector. CII said that when all sectors of the economy are modernizing, the recent incident in Uttar Pradesh is taking back India by several steps.
It will deprive the state of the benefit of modern infrastructure in the form of cold chains, logistics, transport and retail outlets. These infrastructure take several years to build and a single adverse decision affects these sectors.
CII said that in this process, several new jobs that have been created are at stake. Running Modern Large-Format Retail is labour intensive and closure of them will affect the entire chain starting from the farm to the store.
The move will also deter industrial growth by eroding investor confidence, said CII. Any brakes on the growth in Uttar Pradesh will ultimately harm the country.
Confederation of Indian Industry
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