Our 'kiranas' deserve better, including a ministry of their own

Abstract

Our mom-and-pop stories are some of the most efficient entrepreneurial ventures. But they don’t get bank credit, and are subject to inspector Raj. Trade, with a GDP share of 15.1%, only slightly less than manufacturing at 15.6%, is an important segment of the economy. More than 125 lakh kirana stores provide a source of livelihood to 16 crore people. Retail trade has grown faster than the economy: it registered a compounded annual growth rate (CAGR) of 9.4% between 2004-05 and 2008-09 when the Indian economy grew at 8.66%. The retail trade comprises all kinds of people and formats — from street vendors to departmental stores of various types, shapes and characteristics. More than 80% of trade is accounted for by partnership and proprietorship forms — often called the unorganised sector. The kirana shop adjacent to my home opens at 7am and closes at 10pm every day, 365 days of the year. It is very efficient, and one can order through a mobile. The owner knows the tastes and price preferences of our family, but his business is classified as “unorganised” by our experts and national income data. The footfall in his shop cannot be measured using western models (since there is no place for anybody to set foot inside his shop), and so he is derided and ignored. It is like clubbing housewives along with prostitutes in our census data to show them as unproductive citizens. Read more at: https://www.dnaindia.com/analysis/main-article-our-kiranas-deserve-better-including-a-ministry-of-their-own-1418024