Retail plays a crucial role in the process of economic development through value addition, job creation, equitable distribution of national income, capital mobilization and entrepreneurial skills. The retail sector is expanding and modernizing rapidly in line with India's economic growth. It offers significant job opportunities, employing 7% of the total workforce (only agriculture employs more) in the country. Total retail sales in India will grow 13% annually from $322 billion in 2006-2007 to $590 billion in 2011-2012 and become one of the top five retail markets in the world in terms of economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. Recognizing the important role played by the retail sector in the national economy, the central and state governments have taken active measures to promote and aid their growth. Government policy is in favor of foreign direct investment in the retail sector in a phased manner so as to avoid opposition to such entry from domestic retailers. These measures have been particularly effective; but many of the issues/controversies over Indian retail reforms continue to plague the retail sectors. In the 1990s, India introduced extensive free market reforms, including some related to retail, and between 2000 and 2010, consumers in some Indian cities gradually began to experience quality, choice, convenience and benefits of organized retail sector. The Chief Minister of Maharashtra, the state with the highest GDP in India and home to the financial capital Mumbai, also welcomed the retail reform. India has around 11 outlets per 1000 people. The vast majority of unorganized retail stores in India employ family members, do not have the scale to source or carry high-volume products in bulk, have no quality control or