Union Budget 2025-26: Here are the key challenges in retail sector

Industry demands measures to boost consumption via direct tax benefits, higher outlay on PM KISAN, MGNREGA along with increase in daily wage rates under MGNREGA

Key challenges in retail sector

High food inflation, increasing cost of rent, and conveyance expenditures, with tepid income growth   Rapid urbanisation and the rise of e-commerce channels are disrupting higher-profit distribution models for brand owners  Climate change-induced volatility in input costs of agricultural commodities is creating margin pressures across the supply chain

Slowly expanding middle class, combined with 90% informal employment in the economy

 

 

Industry ask

Measures to boost consumption via direct tax benefits, higher outlay on PM KISAN, MGNREGA along with increase in daily wage rates under MGNREGA 

Indirect tax rationalisations around palm oil Custom duties , excise on petroleum products 

  Create a special fund to provide low-cost loans to independent retailers, MSMEs   

Clarity on key regulations such as BIS standards, National Retail policy, digital protection laws to enable ease of doing business