The Retailers Association of India has recommended to the central government that the Union Budget for the fiscal year 2023–2024 should prioritize stimulating demand and encouraging consumption through measures such as reduced taxes or concessions.
The organization expressed that this approach would enhance general consumer sentiment and positively impact the retail sector. Providing tax benefits and relief to individual taxpayers is expected to augment monthly disposable income, thereby bolstering consumption.
“The budget must prioritize growth-oriented measures to stimulate demand and consumption. The budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to aid in the development of the retail industry,” said RAI.
Crucial Role of the Retail Sector in India’s Economy
The retail sector plays a crucial role in India’s economy, contributing approximately 10 percent to its GDP. With an estimated worth of $1 trillion, the Indian retail market is projected to grow to $2 trillion by 2032, making it one of the world’s rapidly expanding retail markets.
“There is a need to provide lower interest rate to the retailers through the special announcement in the budget to assure easier financing for the Retail businesses. The government should allocate a special fund and formulate a special trader finance scheme with SIDBI to help millions of independent retailers across the nation by declaring low-cost loans and relaxing some industry guidelines,” RAI has said.
RAI has also urged the consideration of retail as an essential service, emphasizing that the F&B retail sector should be accorded priority status as an essential service.
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