RAI puts out Pre-Budget Memorandum 2023-24

The Retailers Association of India (RAI) has issued, what it calls the ‘Pre-Budget Memorandum 2023-24’. The list of recommendations includes:

1. Provision of low-cost finance to retailers: As RAI says, there is a need to provide lower interest rate to the retailers through the special announcement in the budget to assure easier financing for the Retail businesses. 
2. Innovative and Convenient Digital Payment Methods: New and easy modes of digital payments must be supported by the government by announcing the focused extent. Further, there is a need to promote Digital transactions by giving waiver of MDR/subsidized MDR on use of the debit card, suggests RAI.
3. ‘Consider Retail as an essential service’: F&B retail sector needs to be considered as a priority and an essential service. Subsidies and benefits should be given on land rates and other necessities such as electricity, proposes RAI. 
4. Expedite National Retail Policy to enable ease of doing business 
5. Extension of MSME benefits to retail traders 
6. E-enablement of MSME retailers
7. Model Shops and Establishments Act: RAI has also suggested that the Government encourage and incentivize more states to adopt the Model Act.  ('The Model Shops and Establishment Act 2016 (hereinafter referred as The Model Bill), which was one of the key asks of the Retailers Association of India for the overall benefit and growth of the Indian retail sector.
8. EPCG for Retail Sector: RAI has also recommended the reintroduction of  the EPCG (Export Promotion Capital Goods) for Retail Sector to create modern infrastructure in retail sector. “Concessional duty benefits under EPCG scheme shall be extended for import or capital goods required by retailers having minimum area of 1000sq. meters,” it says. 

RAI in its statement added, “Retailing in India is one of the pillars of its economy and accounts for about 10 percent of its GDP. The Indian retail market is estimated to be worth $1 trillion and is expected to reach $2 trillion by 2032. Around 50 million people are employed in this sector, it is the fastest growing sector in terms of employment generation and is second only to agriculture in terms of the number of people it directly employs, besides creating indirect employment opportunities. The retail sector has the true potential to provide impetus to the Government’s vision. Through RAI Pre-Budget Memorandum 2023-24, certain areas are highlighted that require Government’s attention, as they have the potential of providing a necessary push to unleash growth in the sector.”