Budget 2019: Here's What Indian Retail Industry Expects from FM Nirmala Sitharaman

The retail industry in India has emerged as one of the most fast-paced industries with total consumption expenditure expected to reach nearly US$ 3,600 billion by 2020.

While the retail industry is set on a robust path, there is a lot more that can be done to boost the sector. (Representational Image/ Getty)

Budget 2019: The Union Budget is set to be announced on July 5, 29019 and with that comes a lot of expectations from the honourable Finance Minister Nirmala Sitharaman. The retail industry in India has emerged as one of the most fast-paced industries with total consumption expenditure expected to reach nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017 owing to factors such as rising disposable incomes, improved standard of living and technological advancements. The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totaling US$ 1.59 billion during April 2000–December 2018, according to the Department for Promotion of Industry and Internal Trade (DPIIT). The report also states that with the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months. While the retail industry is set on a robust path, there is a lot more that can be done to boost the sector and enhance its contribution to the economic framework of the country. We expect that in the upcoming budget, some key areas are addressed such as; 1. Granting industry status to the retail sector to facilitate seamless access to various financial avenues and increase investments and incentives. 2. Tax Refund for Tourists (TRT) scheme, which is largely practiced in foreign countries. This would incentivise tourists to shop more thereby increasing the inflow of funds in the retail sector. 3. Increase employment which would lead to additional income in the hands of the consumer enabling them to shop and promote a positive market sentiment. 4. Making digital payments more cost effective which would enhance the overall experience of shopping for consumers. 5. Infrastructure development to enhance the supply chain network contributing to an efficient retail sector. Infrastructure also needs to improve in and around the shopping centres to improve connectivity. This will help in more footfall to the centres resulting in more consumption. We hope the aforementioned factors are taken into consideration and we look forward to a productive year for the overall retail industry. (Mukesh Kumar is Chief Executive Officer at Infiniti Mall) Disclaimer: The opinions, beliefs and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs and views of ABP News Network Pvt Ltd.