Budget 2021-22 wishlist: Here are the key challenges in retail sector

Key challenges

Lack of a National Retail Policy harmonising multiple laws governing the sector

Low consumption demand, further triggered due to pandemic, leading to reduction in investments

Frequent and sudden tariff & non-tariff barriers leading to supply chain disruptions, increasing costs and thus reducing demand

Inadequate physical, digital infrastructure affecting efficiencies in supply chain management 

Industry ask

A National Retail Policy seeking alignment between sectoral policies and regulations 

Retail sector is governed by multiple laws and regulations, including economic and product specific regulations like FSSA, legal metrology, Drugs and cosmetics etc. Further, there are disparities in inter­pretation and implem­entation at all levels of the government. Thus, the proposed National Retail Policy needs to focus on the aspect of harmonising the regulations impacting the sector, facilitating ease of doing business. 

Infrastructure and Logistics development The National Logistics Policy is yet to be released. The plan should have clear action items on making logistics more efficient through an easing of processes, and a coordinated enhanc­ement of logistics infras­tructure in the country.