Premium| Listen to this article |
NEW DELHI: Retailers Association of India, or RAI, said it was hoping that the government will announce schemes that will put more money in the hands of consumers in the upcoming Budget as two consecutive years of the pandemic have affected household incomes.
“Many were without jobs thanks to reverse migration and lockdowns. Any scheme that helps increase the spending power of the poor would be welcome. Similarly, the salaried class of the population also needs to get more money in their hands to help them consume with confidence. Rising inflation is a worry, and this can be faced better only with more money in the hands of the consuming class," the association that represents scores of retailers pan-India said in a note on Tuesday.
Retailers have been significantly impacted as the pandemic drives a shift in consumer behaviour. Moreover, lockdowns and restrictions on mobility have hurt retailers that have had to temporarily shutter stores and face excess inventory.
It also sought schemes in the Budget that could help cushion the impact of the pandemic on the retail sector.
In July 2021, the government brought in retail and wholesale trade under the Micro Small and Medium Enterprises (MSMEs) category. While the retail sector was recently included for priority lending guidelines under MSMEs, it is important for the sector to get all support that MSME policies accord as more than 90 % of retail can be classified and MSME, it said.
It has also sought Emergency Credit Line Guarantee Scheme or ECLGS for finance in retail sector as lockdowns continue to restaurants and salons.
The association said a more “predictable" GST regime would be welcome. Similarly, many clauses on carry forward and refund of GST require clarity, it added.
The association also urged better infrastructure spending. “All transport infrastructure work helps create new jobs as well help created better logistical connectivity for movement of goods and people. This results in saving time, reducing supply chain wastage and better movement of workforce. Similarly, any expenditure on new sources of energy helps retail access electricity at better prices," it said.
Financial support for digitisation can help better boost the sector. Also, a directional focus to enable retailers through Open Network for Digital Commerce (ONDC) would give a big boost to the sector, RAI said.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!