Indian retail body RAI advocates for reforms in pre-budget submission

Other suggestions include e-enablement of MSME retailers and reintroducing the Export Promotion Capital Goods (EPCG) scheme for retail to create a modern infrastructure in the sector, the association said in a release.

The union budget for fiscal 2024-25 should focus on generating demand and spurring consumption by offering benefits or concessions in the form of lower taxes, it said. This will boost overall consumer sentiment and benefit the retail sector.

The budget should outline supportive policies, simplified regulations, skill development and simple goods and services tax (GST) norms to aid in the development of the retail industry, it said.

The government should allocate a special fund and formulate a special trader finance scheme with the Small Industries Development Bank of India (SIDBI) to help independent retailers by announcing low-cost loans and relaxing some industry guidelines, it suggested.

There is a need to promote digital transactions by waiving off merchant discount rate (MDR) or subsidised MDR on use of debit cards.

Benefits to retail and wholesale trade MSMEs are now restricted to priority sector lending only. RAI has recommended that such traders should be eligible for all benefits available to other MSMEs.

The first step to modernising retailers is encouraging the use of point of sale (POS) machines as these help them in preparing bills and allow store owners to allow a non-family member to man the cash counter without worrying about embezzlement, the association added.

Fibre2Fashion News Desk (DS)