{"id":2940,"date":"2020-03-11T06:41:21","date_gmt":"2020-03-11T06:41:21","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=2940"},"modified":"2026-06-05T13:55:56","modified_gmt":"2026-06-05T13:55:56","slug":"how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/","title":{"rendered":"Contribution of Kirana Store In Indian Economy"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Small-Scale--500x281.png\" alt=\"\" class=\"wp-image-7215\" width=\"824\" height=\"463\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Small-Scale--500x281.png 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Small-Scale--768x432.png 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Small-Scale--1536x864.png 1536w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2024\/02\/Small-Scale--2048x1152.png 2048w\" sizes=\"auto, (max-width: 824px) 100vw, 824px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kirana stores are local shops in the neighborhood that supply items of daily use such as grocery, tobacco, cleaning items etc. In other words, these play the role of modern convenience stores. However, like the departmental stores or supermarkets, these Kirana shops don\u2019t offer any discounts on your purchase. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are also easily accessible because the stores are situated in every locality. The wide range of products would cater to consumer requirements effectively. The impact of these stores in the Indian economy can be described in the following words.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read:- <strong><a href=\"https:\/\/www.indifi.com\/blog\/most-popular-digital-payment-methods-that-all-retail-shops-should-implement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Most Popular Digital Payment Methods that all Retail Shops Should Implement<\/a><\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#Role_of_Kirana_Shop_in_the_Retail_Industry_of_India\" >Role of Kirana Shop in the Retail Industry of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#Role_of_Kirana_Store_in_Growth_Of_Indian_Economy\" >Role of Kirana Store in Growth Of Indian Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#How_Relationship_Between_B2B_and_Ecommerce_Platform_led_to_Development\" >How Relationship Between B2B and Ecommerce Platform led to Development<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#Why_are_Kirana_Stores_Important_in_India\" >Why are Kirana Stores Important in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#What_is_the_revenue_of_a_Kirana_store_in_India\" >What is the revenue of a Kirana store in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy\/#Why_is_the_retail_industry_important_for_Indias_economy\" >Why is the retail industry important for India&#8217;s economy?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Kirana_Shop_in_the_Retail_Industry_of_India\"><\/span>Role of Kirana Shop in the Retail Industry of India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">From a wider perspective, Kirana stores are quite helpful in dealing with the economic crisis of the country. Research data shows that the retail industries of India constitute around one-tenth of the country\u2019s GDP. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The grocery shops or Kirana stores form the main part of the country\u2019s retail industry. Therefore, its growth and development are directly proportional to the Indian economy\u2019s growth. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These shops have been in business for the last many decades and that is why they have comprehended the exact requirements of a wide range of consumers. This is the reason they are able to thrive in this digital era where E-commerce is taking over everything.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/best-practice-for-kirana-shops\/\">Best Practice For Kirana Shops<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Kirana_Store_in_Growth_Of_Indian_Economy\"><\/span>Role of Kirana Store in Growth Of Indian Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The internet is accessible to only 17% of the Indian population. Therefore, the perks of E-commerce due to digitalization are not being enjoyed by everyone. Not only this, a lot of people who have steady access to internet shops for essentials from these local stores because it is more convenient to get the items instantly than to wait for delivery. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read:- <strong><a href=\"https:\/\/www.indifi.com\/blog\/managing-operational-challenges-in-retail-shops\/\" target=\"_blank\" rel=\"noreferrer noopener\">Managing Operational Challenges in Retail Shops<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this case, to shop for the daily necessities, a huge section of consumers is only dependent on the supplies of the Kirana shops which automatically raises the demands of these products in the market for the proper functioning of these stores. As a result of this, more production will take place that will lead to more business.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In these stores, the human interface is the primary factor. People who like to buy the products by analyzing them physically beforehand, also prefer Kirana shops. As a result of this, a personal relationship is fostered between the shopkeeper and the consumer, considering the loyalty and regularity of the customers. Therefore, the requirements of these people can be addressed in an efficient manner.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also Read: <a href=\"https:\/\/www.indifi.com\/blog\/how-to-get-the-best-interest-rate-for-setting-up-your-kirana-store\/\">How To Get The Best Interest Rate For Setting Up Your Kirana Store<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s largest share of consumer\u2019s spending budget undoubtedly goes to the chain of Kirana stores because of the versatility of items that is available at reasonable market prices. Know how customer intelligence is shaping the <a href=\"https:\/\/www.indifi.com\/blog\/how-customer-intelligence-is-shaping-retail-industry\/\">future of retail industry<\/a>. Another important point that needs to be mentioned is that Kirana stores pave the way for small businesses. Here is how the government gets revenue that contributes greatly to the economy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For starting a Kirana shop, a trade license is mandatory for which, a substantial sum is paid to the government treasury. The steady growth of the small business would not only help the economy but also increase the scope of employment.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Relationship_Between_B2B_and_Ecommerce_Platform_led_to_Development\"><\/span>How Relationship Between B2B and Ecommerce Platform led to Development<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Large-scale businesses invest a fair amount of capital on the development of these small retail stores to nourish the soul of the Indian retail industry. Not only this, for establishing a stable B2B platform for these Kirana stores, technological aids are also utilized to their fullest. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It will also help them to stay ahead in the retail competition. For instance, carrying out online transactions and making way for digital payment services will help these shops to bring more convenience to the shopping experience of the consumers. Keeping up with local trends is also very important for these local grocery shops. It also helps to foster a long-lasting relationship with the consumers.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.indifi.com\/msme-loans\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"91\" src=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg\" alt=\"\" class=\"wp-image-5348\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1-500x91.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2022\/05\/MSME-Loan-1.jpg 716w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"> The E-commerce industry has paved the way for the growth of these Kirana shops to ensure their development and help them to achieve their true potential. Moreover, these online business platforms are also dependent on the local shops for their survival. If you are a wholesale seller than you must be aware about <a href=\"https:\/\/www.indifi.com\/blog\/how-gem-portal-is-useful-for-msmes-in-india\/\">GeM portal<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In simple words, the E-commerce platforms depend on small retail stores for the supply of items which, in turn, makes way for the growth of their business and leads to more production. Both these platforms are dependent on each other through the modern chain of consumerism.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For centuries, Kirana shops are in operation and have been catering to the diverse requirements of the consumers. It forms the backbone of the Indian economy, by being an essential part of the country\u2019s retail industry. Therefore, the considerable growth and development of these stores would help to contribute to the growth rate of GDP by tackling several issues like unemployment and giving opportunities for new businesses to rise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To ensure this positive growth, online lending platforms like Indifi provide round the clock assistance and hassle-free <a href=\"https:\/\/www.indifi.com\/collateral-free-business-loans-india\">collateral-free loans<\/a> to boost up local businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_are_Kirana_Stores_Important_in_India\"><\/span>Why are Kirana Stores Important in India?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Kirana stores, or neighborhood grocery shops, are crucial in India. They act as social hubs for the community and provide an informal credit source, especially in rural areas. Customers often buy on credit, paying weekly or monthly, which helps many families manage their finances.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_revenue_of_a_Kirana_store_in_India\"><\/span>What is the revenue of a Kirana store in India?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A typical Kirana store, usually smaller than 100 sq. ft. and serving customers within a 3 km area, earns between Rs 1.5 lakh and Rs 2 lakh per month on average.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_is_the_retail_industry_important_for_Indias_economy\"><\/span>Why is the retail industry important for India&#8217;s economy?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Retail is the third biggest sector in India, making up over 12% of the GDP. It also gives jobs to more than 50 million people. And not just that, it creates even more jobs in related areas like storage, transportation, building, and packing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kirana stores are local shops in the neighborhood that supply items of daily use such as grocery, tobacco, cleaning items etc. In other words, these play the role of modern convenience stores. However, like the departmental stores or supermarkets, these Kirana shops don\u2019t offer any discounts on your purchase. These are also easily accessible because [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[659,314,660],"class_list":["post-2940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-how-kirana-shops-are-proving-to-be-the-backbone-of-the-economy","tag-kirana-shops","tag-kirana-shops-backbone-of-the-economy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=2940"}],"version-history":[{"count":17,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2940\/revisions"}],"predecessor-version":[{"id":10066,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/2940\/revisions\/10066"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/2941"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=2940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=2940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=2940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}