Retail sector looks to Union Budget, 2022 to drive growth

21 January 2022, Mumbai:

Rising Omicron cases has once again derailed India’s retail sector which now looks forward to the upcoming Budget to drive growth. The sector has demanded several policy measures and incentives to support growth. First demand is the continuation of counter-cyclical fiscal policy for stabilizing business cycles. The policy calls for a reduction in spending together with a hike in taxes in sunny scenarios and an increase in spending coupled with lower taxes in gloomy times.

The sector also demands expedition of the National Retail Policy to harmonize multiple laws that impede its ease of doing business. The government should introduce stable polices and taxes besides focusing on digital facilities. It needs to offer incentives for retailers to ramp up their digital infrastructure to boost supply management and enhance shopping experiences.

Further, retailers demand, government should launch the National Logistics Policy at the earliest to plug the supply chain gaps. It should also hike FDI in multi-brand retail from 51 per cent to 75 per cent. However, GST rates on garments, textiles and footwear need to be reduced to 5 per cent from the current 12 per cent.