FDI in retail sector to create 10 mn jobs in 10 yrs: Report
Foreign direct investment in the retail sector is likely to create as many as 10 million jobs in a span of 10 years, making it the largest sector in organised employment, says a report.business Updated: Sep 18, 2012 18:40 IST
Foreign direct investment in the retail sector is likely to create as many as 10 million jobs in a span of 10 years, making it the largest sector in organised employment, says a report.
According to Indian Staffing Federation (ISF), an apex body of the flexi staffing industry in India, FDI in retail can create around 4 million direct jobs and almost 5 to 6 million indirect jobs including contractual employment within a span of 10 years.
ISF welcomed the government's move to allow entry of Foreign Direct Investment (FDI) in the retail sector and said that this will give a boost to organised retail and will have a positive impact on employment generation.
In a big ticket reform measure, the Cabinet and CCEA on last Friday, cleared FDI in multi-brand retailing and aviation as well as disinvestment in four PSUs.
"It is expected that the impact of the FDI in retail will have a much wider impact on organized employment than what happened in IT 12 years back as it shall open doors for less skilled and less educated people as well. The impact shall be far and wide and all across country," ISF said.
Logistics and supply chain companies are also expected to grow as they will be the link between small manufacturers, producers and farmers and the organized retail chains, and thereby help them get higher returns for their supplies.
This close integration with the organised retail chains will also help small-time producers in gaining access to the latest technologies, systems and processes, hence, enabling them to maximize their profits.
After the opening up of the retail sector the only challenge there will be is to create enough skilled workers to cater to the demand that shall follow, ISF said.