“Balance between populist & policy measures,” says RAI CEO about Union Budget

Responding to the Union Budget 2024-25 announcement by the Finance Minister Nirmala Sitharaman, Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “The government has tried to strike a balance between populist and policy measures. RAI appreciates the government's focus on empowering the middle class and rural population. Initiatives such as monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions will provide higher disposable income, leading to increased spending. We believe this will stimulate consumption growth, thereby boosting the overall economy. The reduction of duty on gold, precious metals, and mobile phones will also provide a significant boost to these sectors, particularly during the festive season.”

He added, “The government's commitment to skilling and employment support, including initiatives for youth employment and skilling programs, is another commendable aspect of the budget, ensuring a future-ready workforce in the retail sector.”

He also felt that the budget's emphasis on MSMEs and startups, including enabling more lending and abolishing angel tax, is a positive step towards realizing their potential. “Tax simplification and compliance, which are crucial needs of the hour, have also been addressed. Additionally, the Employment Linked Incentive, offering reimbursement to employers up to ₹3,000 per month for two years towards their EPFO contribution for each additional employee, is a welcome move,” he said. 

Highlighting other aspects of the Budget, he added, “The establishment of working women's hostels and creches in collaboration with the industry is an essential measure for supporting women working in the retail sector. The focus on developing infrastructure for shopping in urban development is a significant step forward.”