Friday, 12 January 2018

Budget 2018: From FDI to unified market, challenges ahead for retail sector

Budget 2018

BUDGET 2018 - 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 e-commerce sector
Lack of access to organised funding, especially to small retailers

retail budget Source: Strategy&/PwC ResearchWhat 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

 Akash Gupt, partner and leader regulatory services, PwC India
PwC POINT OF VIEW

Akash Gupt, partner and leader regulatory services, PwC India

We look forward to a national policy for retail to complement growth of various channels
It will provide the right stimulus to both domestic and foreign investments in the sector.
A conducive regulatory environment for offline and online retailers will help build ‘New India’, benefiting consumers, industry and economy at large

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