FDI in retail can create 10 million jobs, says study
18 Sep 2012
Foreign direct investment in the retail sector – the gates for which were opened last week – is likely to create as many as 10 million jobs over the next 10 years, making it the largest sector in organised employment, says a report by the Indian Staffing Federation.
The apex body of the 'flexi-staffing' industry in India says FDI in retail can create around four million direct jobs and five to six million indirect jobs, including contractual employment, within a decade.
"It is expected that the impact of the FDI in retail will have a much wider impact on organised employment than what happened in IT (information technology) 12 years back, as it will open the doors for less skilled and less educated people to gain employment. The impact will 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 organised 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 maximise their profits, ISF says.
After the opening up of the retail sector the only challenge will be to create enough skilled workers to cater to the demand that shall follow, ISF said.
