Industry leaders Push for National Retail Policy and Digitalisation for the Retail Segment
New Delhi, March 17, 2022: In its bid to seek constructive policy making for the retail and MSME sector, industry bodies the Federation of Indian Chambers of Commerce & Industry (FICCI) and Center of Policy Research and Governance- India (ICPRG)in association with METRO Crash & Carryorganized a multi-stakeholder conference, ‘Retail Samvad’ on the theme ‘Future of Small Retail: Digitalized Retailers & MSMEs’in New Delhi, today.
The conclave was graced by Shri Dilip Saikia, Member of Parliament & National General Secretary, BJP;Mr. Praveen Khandelwal, General Secretary, CAIT; Mr. Arvind Mediratta, Chairperson for Retail and Internal Trade, FICCI and MD & CEO of METRO Cash & Carry India;Mr. Akash Jindal, Economist;Ms Prerna Saxena, Senior Digital Payments Expert, Better Than Cash Alliance, UNCDF;and other experts from the industry.
In the valedictory session of the conclave, Shri Bhanu Pratap Singh Verma, Minister of State for Micro Small and Medium Enterprises, said, “The MSME sector will play an instrumental role in helping India become a 5 trillion dollar economy by 2025. The Government has extended the Emergency Credit Guaranteed Credit facility to Rs 5 lakh Crore by adding Rs 50,000 crore for the year 2022-23 which will provide financial impetus to the MSME and Retail sector. Till date, Rs 3.12 Lakh crore loan has been credited benefiting over 2.5 crore MSMEs in the country. The UPI, JAM trinity and other digital technologies are facilitating ease of doing business for the sector. The Government will look forward to the recommendations of the conclave and will ensure that they reach the logical conclusion.”
Sharing his views on the subject, Mr. Arvind Mediratta, Chairperson for Retail and Internal Trade, FICCI and MD & CEO of METRO Cash & Carry India, “The retail sector is experiencing the effect of formalisation of economy and digitalisation. We need an inclusive and integrated National Retail Policy which includes the interestsof the small retail, modern retail and ecommerce partners, and establishes a level playing field. The future of retail is omni-channel. The Government needs ensure easier access to loansunder the Mudra scheme to facilitate digitalization and modernisation of the sector. Kiranas needto be empowered with data analytics to increase their sales and footfall. The retail sector has been one of the fulcrums of the India’s post-Covid growth phase. Government of India must consider giving Retail an industry status and have a separate Retail Ministry for the sector’s ease of doing business”
Expressing the perspective of small-time retailers, Mr. Praveen Khandelwal, General Secretary, CAIT, “The Retail Sector is the only industry which does not have any Ministry. Only 5% of merchants in the retail sector avail formal loans; 95% retailers seek informal finance. The retailers need to be empowered with easy access financial support. The small retail and MSME sector is deeply affected by various gross violations and unhealthy trade practices by e-commerce giants which include exclusive brand association, high discounts and preferential selling. With regards to ease of doing business, there is a need to eliminate redundant laws and amend relevant laws. We also need to establish a cooperative like system in retail sector. Small merchants want to work shoulder to shoulder with the retail giants.”
The day long conclave concluded with the Retail and MSME sector endorsing the following recommendations and asking for urgent support from the Government:
- Expediting the National Retail Policy at the earliest to ring-fence the interest of small retailers in India.
- Navigating through GST is still a challenge for the unorganized retailer; Government should look at reducing and simplifying GST rates by shifting to a two-slab regime.
- Help for small retailers to access credit and formal banking and make easy loans available under the Pradhan Mantri Mudra.
- Yojna scheme Government should collaborate with industry to upskill existing manpower of small retailer especially in the MSME sector.
- Government should consider a Ministry of Retail to address all its issues; Retail should get an ‘industry status’ so that the sector gets the requisite perks and incentives as other sectors
- Government should reducing the number of licenses- 30-40 licenses required by retail stores; need for single window approval with extended period for license validity renewal.
- Government should incentivize small retailers and shopkeepers for modernization and digitization to enable more ease of doing business for small retailers.
- Need for setting up Incubation center for retail sector (like IT sector); tie-up with educational institutes and colleges.
Corporate Comm India (CCI Newswire)
