Organized Retail vs Unorganized Retail

Retail alone contributes 10% to India's GDP. It is very important that any country should have more no. of organized retail stores rather than unorganized, to be economically strong.

Any retailer who have license for the store who pays sales tax, income tax and other charges etc ,comes under organized retail. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, local vendor shop.

Advantages of Organized Retail:

1. All shops are registered and are approved by government.
2. All taxes are paid by the retailer to government which makes country economically strong
3. Employees get all the benefits which are ordered by government, like Medical benefits, Provident fund, approved working hours , leaves etc

There is no advantage in having unorganized retail. Several criminal offence are done, like product are sold above MRP, employee have to work more than 12 hours , no security and benefits to employees

So if the country need to have a good growth in its GDP, it will have to maximize the organised retail and remove the unorganized retail. It might be tough because rural area is highly dependent on this, so government should have find out some solution for them.