The Retail Association of India (RAI) has released its Pre-Budget Memorandum 2024-25, highlighting certain areas requiring the Government’s attention to provide a necessary push to unleash growth in the retail sector.
Retailing in India accounts for about 10 per cent of its GDP. The Indian retail market is estimated to be worth $1 trillion and is expected to reach $2 trillion by 2032. India is one of the fastest-growing retail markets in the world, with 1.4 billion people
The organisation has asked that the Government provide some focus on a few aspects including lowering taxes in the Union Budget to generate demand and spur consumption.
Secondly, providing lower interest rates to retailers to ensure easier financing for 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.
Thirdly, new and easy modes of digital payments must be supported by the government by announcing the focused extent. Further, there is a need to promote Digital transactions by giving waiver of MDR/subsidized MDR on use of the debit card.
RAI also recommends that retail and wholesale traders should be eligible for all benefits available to other MSMEs.
With these recommendations RAi hopes to foster a better environment for retailers to do business in India a large number of which include apparel retailers.
