MAM

Expectations from the government in formulating national retail trade policy in Budget 2020

Year 2019 saw the retail sector facing multitudes of problems

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/01/31/deva.jpg?itok=NTyuIgRt

India is the fifth-largest global destination in the retail space. With the budget 2020 being around the corner, there is a hope that the new policies will have a positive impact on the retail and the consumer sector. The retail sector is the most dynamic sector in recent times, there has been drastic changes and has witnessed high consumer activism, supply chain model, marketing and advertising activities and introduction of new players in the market. 

A joint report by Assocham and MRRSIndia.com suggest that the retail the Indian retail / consumer market is set to cross the $1 trillion mark by 2020 due to rise in per capita income and consequent expenditure. 

Below are the 8 challenges which were faced by the retail sector in 2019:

  • Higher GST rates for retail players have been resulting in accumulation of non-refundable credit due to substantial spend on advertising and branding spending capacity. 
  • There has been multiplicity of laws and regulations governing the sector
  • Restrictive conditions under the foreign direct investment (FDI) policy for single-brand retail trading leading to ambiguities and hurdles for the e-commerce sector. Improvising conditions and minimalizing restrictions will further give a boost to FDI.
  • Lack of clarity and understanding of regulations/guidelines governing imposed on online retail trading. 
  • Lack of proper physical and digital infrastructure, developed supply chain resulting in inefficiencies and higher costs. 
  • Growth in retail sector has resulted in a growing demand in the real estate sector thus resulting in a rise in overall real estate cost
  • Lack of effective supply management. Solid infrastructure and developed supply chain will improvise the foundation and overall profitability
  • Lack of incentives for the new players in the retail market. 

Budget 2020 gives an opportunity to the government to address the main problems faced by the retail sector and push the economy to a higher growth. Some of the expectations from the government in Budget 2020 are listed below.

  • GST slab to be simplified and successful / structured implementation of new mechanism that will help ease the process. We also look forward to the reduction of the GST which will encourage more people to spend.
  • The budget may focus on simplification of the government laws will have a positive impact on the sector and will give freedom to try new techniques and introduce new trends. Also Clarifications on open issues and introduction of measures for ease of doing business would be of great help.
  • The budget should consider educating the retailer and traders and clarifying regulations for retailers ensuring sound risk management practices and KYC (know your client) mechanisms.
  • Promoting partnership and collaboration for accessing new channel capabilities, digital technologies and easier entry into new market may help in optimizing costs.
  • A further initiative by the government by introducing laws and rules to reduce the real estate cost would prove to be of great help to common man who look forward to live in beautiful homes or for investment purposes. Stabilisation of tax policies on properties would also be beneficial since there is a constant change in rate slabs.
  • Introducing new incentives and bold reforms will encourage the new-bees in the retail industry to expand their activities across various platforms.
  • Supporting rural growth and expecting positive initiatives like MGNREGA, increase in the MSP for select crops, focus on electrification of villages, farmer friendly technologies, etc.
  • We expect new entrants/ investors in the FMCG space with the introduction of simplified tax structures, stability in custom duty and a less aggressive tax administration.
  • A special start-up growth fund to support start-ups will boost the start-up ecosystem immensely.
  • We expect the budget to provide impetus for digital payments (Debit and credit cards, UPI)

With all believe in the government we expect new reforms in budget 2020 keeping in mind the betterment of the retail sector and in the best interest of retailers and common man.

(The author is retail head, Kalpataru Ltd. The views expressed are his own and Indiantelevision.com may not subscribe to them)

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/11/ra.jpg?itok=SUrKM3Go
Shoppers Stop MD and CEO Rajiv Suri resigns

NEW DELHI: Shoppers Stop MD and CEO Rajiv Suri has tendered his resignation for personal reasons, effective 25 August 2020 to pursue a career in a company outside India.  The board of directors of the company at its meeting has accepted his resignation and placed on record their appreciation for...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/11/opp.jpg?itok=0HLe2TGT
Oppo VP-product Sumit Walia quits

NEW DELHI: Oppo India VP of product and marketing Sumit Walia has put down his papers. Walia joined the company last year April. Prior joining to Oppo India, Walia spent around nine-year stint at Samsung. He had joined the in 2010 as a product manager and left the organisation in 2019 as director....

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/11/arim.jpg?itok=gEDWIf50
Ola COO & global CMO Arun Srinivas quits

NEW DELHI: Ola COO and global CMO Arun Srinivas has reportedly stepped down from his position. He had joined the company last year. There are reports that senior VP corporate affairs Sanjiv Reddy has also resigned. Prior to joining to Ola, Srinivas was with West Bridge Capital Partners for two...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/11/chumb.jpg?itok=969v3FUV
Chumbak launches new brand identity

Chumbak, the design-led lifestyle brand, unveiled its new logo today with a digital release. The logo change is part of the larger shift in the positioning of the brand. Chumbak was founded in 2010 by Shubhra Chadha and Vivek Prabhakar with the idea of designing fun souvenirs & collectibles...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/10/kinetic.jpg?itok=Eo-SpptO
Kinetic Worldwide launches IOM, an OOH planning tool in the new normal

NEW DELHI: Global player in the out-of-home (OOH) media industry, GroupM’s Kinetic Worldwide, today announced the launch of India On The Move (IOM). IOM is Kinetic India’s latest proprietary tool developed fully in-house to help understand audience traffic patterns.

MAM Media and Advertising Out Of Home
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/10/haldi.jpg?itok=XjQ82KxV
Haldiram's campaign for safe customer experience

NEW DELHI: Haldiram’s has launched #HaldiramsCare campaign to promote social distancing for people visiting their favourite and reliable food restaurant outlet. The campaign has been created by Option Designs and is focused on ensuring customer safety by promoting social distancing on ground level...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/10/path.jpg?itok=T5C1rQXk
Pathkind Diagnostics and Hero Electric launch "Be Safe-Keep safe" testing program

Hero Electric, a pioneer in the electric vehicle industry in India, today announced its Be Safe – Keep Safe program in collaboration with Pathkind Diagnostics – a leader in healthcare and diagnostics. During this COVID crisis, being safe while keeping others safe is very critical. With that in mind...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/10/hyundai.jpg?itok=vr9DA9iq
Hyundai releases ‘Haq Hai Humara’ brand anthem

NEW DELHI: Hyundai Motor India Ltd (HMIL) today released an anthem as a tribute to the ‘Indomitable Spirit of India’. The corporate brand anthem ‘Haq Hai Humara’ aims to bring together the people of India and salute their resolve to stand united and stay strong in this unprecedented adverse...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/10/Fossil.jpg?itok=fpUJPxNo
FOSSIL WELCOMES ON-BOARD ITS NEWEST CELEBRITY AMBASSADOR

NEW DELHI: FOSSIL today announced the addition of Disha Patani as its newest celebrity brand ambassador in India. The youth style icon successfully drives her large fan base with her authenticity and sense of fashion that is creative, fresh and modern.

MAM Media and Advertising People

Sign up for our Newsletter

subscribe for latest stories

* indicates required