Budget 2020 wishlist: Here are the key challenges for retail sector

Here are the key challenges:

• Multiple regulations and regulators governing the sector
• Low consumption demand leading to reduction in investments and profitability
• Lack of alignment between Centre and state on applicability of laws/regulations and compliance therein leading to increased cost of doing business 
• Inadequate physical and digital infrastructure affecting efficiencies in supply chain management 
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Industry ask

• Seek alignment between sectoral policies and regulations - Multiple laws and regulations govern the retail sector, including economic and product specific regulations like FSSA, legal metrology, Drugs and cosmetics. Further there are disparities in interpretation and implementation at all levels of the government. Thus, there is a need to align and harmonize the multiple policies and regulations to facilitate ease of doing business

• Avenues for financing and linkages with Global value chains: Retail is a complex ecosystem with extensive backward and forward linkages having intricate distribution network and infrastructure requirements. An enabling investment environment that supports the businesses to scale up their value chain and help companies integrate with the global value chains is the need of the hour

Akash Gupt, Partner and Leader Regulatory Services, PwC India

PwC POINT OF VIEW

“The last one year has brought new challenges for the retail industry in the form of decelerating growth and slowing consumption.  While the Government has been introducing stimulus packages to boost investment and demand, it is crucial that new and disruptive policy changes on the anvil are timed and spaced appropriately to ensure industry preparedness and adoption.”

Kumar Rajagopalan, Chief executive officer, Retailers Association of India

Industry voice

“There is need to expedite formulation of the national policy for retail trade. Indian-owned, India-born retail enterprises should be allowed to raise up to 49 per cent foreign capital under the automatic route without restrictions. The budget should also put more money in the hands of people to create demand and increase consumption at a time when sentiment remains weak.”