Impact of Big Shopping Malls and Retailers on Employment and Consumer Prices in India

A recent Parliamentary Standing Committee report (Government of India, 2008) on India's retail sector has made a recommendation for "a blanket ban on domestic corporate heavyweights and foreign retailers from entering into retail trade in grocery, fruits and vegetables". On the other hand, a recent study conducted by the Indian Council on International Economic research (ICRIER) at the behest of the Government of India indicates price benefits to farmers, lower prices to consumers and almost no effect on the traditional retailers (Joseph et al., 2008). These contrasting suggestions necessitate more intensive studies using primary data for taking better policy decisions concerning both organised and unorganised retails in India. It is in this context, using primary survey data, this paper examines whether the expansion of big shopping malls and organised retailing has generated more employment and whether consumers do enjoy price advantages.