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RAI recommendations for Budget 2020-2021
Published on January 23, 2020
by Kumar Rajagopalan, Chief Executive Officer, Retailers Association of India (RAI) on the budget recommendation for the Retail Industry:
“There is a need to create a positive sentiment in the market. One of the measures required for that is to reduce the tax burden so that there’s more money in the hands of the middle class. The other thing is to look at easing GST related troubles for consumption-led items, be it reducing tax slab or simplifying procedural issues. We believe that implementing a retail trade policy, which is predominantly focused towards ease of doing business will be of immense help. There’s a need for ensuring that finance is available for retail because if retail flourishes consumption automatically goes up, giving support to all industries. To help grow and compete with global brands, the smaller retailers would require a subsidised rate of financing and the larger retailers will have to be given access to global funds. Unless this happens, local retailers will always be small in comparison with global retailers who have cheaper access to funds as they don’t have a cost of capital.”
