CAIT pitches for separate ministry for internal trade in India

The Confederation of All India Traders (CAIT) has called for integration of domestic trade as a booster to the economy and has also urged to form a separate Ministry of Internal Trade for monitoring domestic trade. The CAIT has also opined that foreign trade may be put under domain of Ministry of External Affairs. Currently, it is being regulated by Ministry of Commerce.

In its communication to PM, the CAIT has mentioned that although domestic trade is the largest contributor of national economy while contributing nearly 45% national GDP and largest employment-generating sector after agriculture with more than 5.77 crore business enterprises conducting business activities in domestic trade, it is fragmented and disintegrated. India can attain double digit growth if support policies are carved out for domestic trade.

According to the proposal, different verticals of domestic trade including brick & mortar shops, e-commerce, direct selling, wholesale Cash & Carry Stores and big retail needs to be integrated in a manner that one vertical should not encroach upon domain of other vertical and for regulating the integrated model, a separate Ministry of Internal Trade may be formed to monitor this sector - said CAIT.

It further said that the existing retail sector may be upgraded under Digital India program while skills of entrepreneurs may be enriched under Skill India campaign through workshops, small manufacturers be prompted to embrace technology under Government's Make in India programme and financial inclusion of this sector may be attained under Pradhanmantri Mudra Yojna in partnership with Trade Federations & Associations across the country. The CAIT has also suggested launching a cashless economy drive among domestic trade since most of the transactions in domestic trade are conducted on only-cash basis for different reasons.

The CAIT has also said that various countries have recognised that reducing domestic trade impediments can enhance productivity, reduce cost for business and contribute to political stability and as such greater focus on domestic trade will lead to much faster growth in economy and will achieve a distinct balance of legislative, judicial and institutional features.