Budget 2018: From FDI to unified market, challenges ahead for retail sector
Budget 2018: From FDI to unified market, challenges ahead for retail sector on Business Standard. Indian retail industry is projected to grow at a promising CAGR of 10% to reach $1.1 trn by 2021
Budget 2018-19 Live Key challenges Multiplicity of laws & regulations governing the sector Lack of industry status for retail Lack of clarity and understanding of regulations/guidelines governing online retail trading leading to ambiguities and hurdles for the ecommerce sector Lack of access to organised funding, especially to small retailers What industry wants National Retail Policy: A single retail policy will help streamline various laws and regulations affecting the retail sector Unified National Market: To be globally competitive, India needs to adopt a ‘unified market’ approach to the retail sector – minimise licences required and establish a system of single-window clearance. The game-changing GST will help Rationalisation of FDI: While the government has given the necessary push to ‘Make in India’ in food retail, it would help if non-food ‘Make in India’ retail category can also witness a liberalised FDI policy SBRT and MBRT: The SBRT and MBRT frameworks need to be defined in the FDI policy.
Divisions could be on the basis of nature or formats of retail Industry status: This will improve access to funding to MSME retailers, especially amid high pressure with growing competition from organised retail and e-commerce
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