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Before the Finance Minister Nirmala Sitharaman presents the Union Budget in the Parliament on February 1, 2021.
Here’s what Retail Sectors expect from the Government:
Mr. Arjun Ranga, Managing Director, Cycle Pure Agarbathi:
“After a catastrophic year, we hope Budget 2021 brings relief to entrepreneurs across sectors and help in improving the economic infrastructure of our country. While the country is working towards reversing the impact of the pandemic, the new policies need to expedite the revival process.
This year the government needs to invest in rural infrastructure to give impetus to the rural markets which hold great potential. They should also take initiatives to streamline the logistics within the states to speed up the flow of materials and products. Investment should be made in distribution infrastructures like a warehouse and freight corridors. As a developing nation, our main focus should be on education and primary healthcare.
We have to bring in the proper system to make it accessible to every person. There should be a reduction in income tax for the individuals which will increase the purchasing power for the public. The budget should also introduce policies that will enable us to make world-class products in India for global consumption. “
Mr. Mahesh M, CEO Creaticity:
“As a home retail enabler, we would be keenly looking out for some sops given to the residential real estate to encourage more absorption, mainly in terms of home interiors. Secondly, we look forward to a reduction in the customs duty on furniture products and raw materials whose burden is currently shouldered by the end consumers. Doing so will make products more affordable while also strengthening the Make in India initiative.
Finally, it would be interesting to see something like a work from home (WFH) allowance to encourage people to invest in furniture associated with the home office setup. As private sector companies are widely adopting this trend, this step would provide a major fillip to the retail sector.”
Ravi Saxena, Managing Director of Wonderchef:
“Leaving behind all the negativity and apprehensions, everyone is starting fresh and looking up to the Budget 2021 with much optimism. The industry is eagerly waiting for the government to introduce National Retail Policy and streamline the compliance mechanism to facilitate business expansion.
Also, we are expecting an increase in the FDI inflow which would help organized players to expand their presence as well as have access to the best manufacturing practices and stimulate the Make in India initiative.
The rising input cost needs a strong consideration in this budget so that the end consumer doesn’t have to face the dual setback of Covid-led financial strain and price rise.”
Pronam Chatterjee CEO, BluePi Consulting Pvt. Ltd:
“Retail industry came to a virtual standstill during the pandemic and was one of the worst-hit sectors. The cascading effects impacted the entire value chain that serves the industry.
The festive season has shown signs of recovery with major retailers recuperating to around 90% of pre-covid sales. But the recovery is still nascent and not strong enough to carry on without support.
A few things that we expect from the budget are measures to improve the disposable income in the short term, by reducing the tax burden and thereby spurring demand. The supply side of the value chain also needs to be supported by easing retailers’ access to capital.
Ease of doing business and access to capital should be the focus area for the retail sector in this budget. MSME does not cover the retail trading that constitutes a bulk of retailers; if they are not manufacturing.
On the other hand, the garment manufacturers are considered MSME, but without a special package that assists them with working capital, they would also be left high and dry.
So we expect the government to broaden the MSME umbrella and announce special packaged for retailers under MSME so that they can tide over these challenging times.”
Anand Kumar Bajaj, Founder, MD & CEO, PayNearby:
PayNearby’s retail network has worked tirelessly to ensure seamless access to financial services, especially during the peak lockdown months last year. 93% of our business correspondent network has been committed to working in tier 2 and tier 3 towns, serving as the sole point of cash disbursal in locations with limited financial infrastructure.
However, the commission rates for BC services are very low to make it a profitable business. Additionally, BCs, by default, come under the 27% GST and 5% TDS on cash withdrawal even after the tax act having enabling provisions. This makes it difficult for them to stay afloat.
We hope that this Budget takes into consideration the tough working condition of the BC network and make a few regulatory changes to ensure the viability of a community that has been vital to the cause of financial inclusion in the country.
To continue sustaining the competitive advantage in Digital proliferation in India, restoring normal MDR on transactions will incentivize the digital ecosystem and facilitate a smoother growth trajectory towards innovation.”