21 January 2025, Mumbai
Emerging as one of the fastest-growing retail markets globally, India is projected to reach a market value of $1.4 trillion by 2027, according to Reliance Industries' (RIL) annual report.
Driven by factors such as rapid urbanization, rising income levels, expanding female workforece and a young aspirational population, India is projected to become the world’s third-largest retail market by 2030, shows the report.
Industry leaders in India hope for new policies to provide the much-required support and benefits to the retail sector. Highlighting the industry’s expectations from the upcoming budget, Deepak Bansal, Whole-Time Director, Cantabil Retail India, says, the industry needs enhanced support for MSMEs and startups to boost domestic production and exports. Introducing tax relief to increase income would drive demand, opines Bansal. He advocates for a progressive budget addressing these priorities.
Shriti Malhotra, Group CEO, Quest Retail, recommends new policies to uplift the retail sector, particularly those fostering youth employment, sustainable practices, and inclusive hiring. She emphasizes on the importance of private consumption as the foundation of retail growth, suggesting that increased tax exemptions and reduced GST on essential personal care products would provide relief to middle-class consumers. It would not only boost disposable incomes but also enable consumers to purchase high-quality, ethical products that align with their growing preference for sustainable choices, she adds.
Malhotra also urges the government to offer new incentives for green initiatives, such as sustainable packaging and energy-efficient retail operations. She emphasizes on the need to implement a National Retail Policy to simplify compliance, improve logistics in Tier II and Tier III cities, and make it easier to do business. Providing targeted incentives for small retailers could level the playing field, she says.
Additionally, investments in retail skill development programs, particularly in digital marketing and technology adoption, are critical for creating a future-ready retail sector capable of meeting evolving consumer demands, Malhotra concludes.
