RAI Calls For Low-Cost Financing And Policy Reforms For India’s Retail Sector

Date

12/17/2024 2:09:07 PM

(MENAFN- KNN India)
New Delhi, Dec 17 (KNN) The Retailers Association of India (RAI) has submitted comprehensive recommendations for the upcoming union budget, calling for strategic financial measures to support the retail sector.

In a detailed proposal to be presented ahead of Finance Minister Nirmala Sitharaman’s budget presentation in February, the association has emphasised the critical need for low-cost financing options for retailers nationwide.

RAI has urged the government to establish a specialised trader finance scheme in collaboration with the Small Industries Development Bank of India (SIDBI), aimed at providing accessible and affordable credit to millions of independent retailers.

Currently, retailers and wholesale traders, who were included under the MSME definition in July 2021, are limited to credit access through priority sector lending norms.

The association is advocating for expanded benefits for Udyam-certified businesses, including enhanced registration capabilities that would allow multiple business activities under a single registration.

Additionally, RAI recommends enabling retailers to utilise platforms such as the Government eMarketplace (GeM), the delayed payment monitoring portal Samadhaan, and the invoice discounting platform TReDS.

Beyond financing, RAI’s budget recommendations encompass a broader range of policy interventions.

These include lowering taxes to stimulate consumer sentiment, recognising the food and beverage retail sector as a priority service, expediting a national retail policy to improve business ease, and reintroducing the Export Promotion Capital Goods (EPCG) scheme to facilitate modern infrastructure development.

The proposed measures come at a critical time for India’s retail sector, which currently contributes approximately 10 percent to the country’s gross domestic product.

Market projections indicate substantial growth, with the sector expected to expand from its current valuation of around USD 1 trillion to USD 2 trillion by 2032. The RAI’s recommendations aim to support and accelerate this anticipated economic expansion.

(KNN Bureau)

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