All eyes are set on the Budget 2021-2022 for the key role it will play in accelerating the revival of the economy. Consumption drives the economy, and retail is the gateway to consumption.
The Indian Retail sector (sized at USD 854 bn) was one of the worst impacted due to the pandemic. Its ripple effects were felt by all stakeholders down the consumption value chain. Recovery will need unconventional solutions and government support. At this juncture, all efforts are required to boost the local economy and help revive retail, saving millions of jobs. Budget 2021-22 will play a key role in this.
Speaking on the expectations of the Indian Retail Industry from the Union Budget 2021-22, Kumar Rajagopalan, CEO, Retailers Association of India said, “The retail industry was almost squashed during the pandemic. It is slowly getting back on its knees with the opening up of the economy. To get this crawling industry back to its feet and start running, we believe that the budget should address two main things that will bring in Ease of Doing Business for retailers: Freedom from various procedural strangleholds and access to funds necessary for growth.“
The Retailers Association of India (RAI) has had detailed discussions with its members and a comprehensive set of suggestions have been submitted to the Central Government for the Union Budget 2021. Apart from various Direct and Indirect Taxes (GST) recommendations, RAI has submitted the following suggestions for the Government to consider:
- Accelerate the formulation and implementation of the National Retail Policy to boost the retail sector and facilitate ease of doing business.
- Allow retailers to register under MSME so that retailers too can be entitled for all benefits available to MSMEs.
- Encourage states to adopt Model Shops and Establishment Act.
- Consider decriminalization of Legal Metrology to improve ease of doing business.
- Modify/extend Pradhan Mantri MUDRA Yojana Scheme to include financial support for digitalization to Kiranas & small retailers.
The retail business is recovering at a quick pace and this momentum needs to be sustained. The next budget must prioritise growth-oriented policies and measures for the same.
