The retail industry stalwarts says that the Union Budget 2015 should create employment induced demand and investments.
Here are some of the broader expectations of the retail sector from the Union Budget 2015
Since India has an aspiring and vivacious customer base, it is a place that every brand should be present in. The upcoming budget should look at cutting down exercise duty which will help aid the ‘Make in India’ campaign.
* The repo rate by RBI should be reduced in order to boost investment in the economy and increase liquidity in the market.
* Cutting import duty on products should help the Indian manufacturers.
* Policy reforms and relaxations will support promotion of FDI and support the ‘Make in India’ campaign.
* Relaxation of FDI limit in e-retail will create employment in the country.
* GST subsuming all indirect taxes can help retailers reduce the taxes.
* The government should also look at zeroing in some ground rules in order to boost the eCommerce sector.
* Retailer media caught up with industry stalwarts to gather what budget should hol;d for the industry.
Retail sector is excited about 'make in India' opportunity and expecting policy clarity for sector in Budget. "-Rakesh Biyani, Director, Future Group
In words of Paresh Parekh, Tax Partner – Retail & Consumer Products, EY, “The budget expectations and recommendations for the retail sector should incorporate the rolling out of GST and mending indirect tax inefficiencies, FDI clarifications on single brand retail trading, incentivizing capital outlay for Infrastructure, profit-linked employment related incentives, transferring pricing ambiguities, and increase in disposable income.
Harkirat Singh, Managing Director of Woodland opined, “This Union Budget 2015, we hope the government will announce the implementation of GST. It will be an important step to remove the various artificial trade barriers and in return will be a huge boost to trade in the country. The retail sector is also expected to generate huge employment opportunities but would require incurring significant employment-related costs.”
“With the new government coming to power, there are a lot of expectations indeed. With a positive frame of mind, anticipation is in place that Budget 2015 will be focused on promoting e-commerce, innovation and entrepreneurship. As a further boost to the e-commerce industry, a speedy implementation of Goods & Services Tax (GST) for a ‘One-India’ approach is the ‘need of the hour’, with a different tax rate in each state for various categories. This will help the industry players to curb the impediments in services like Cash on Delivery”. The e-commerce sector in India is moving at a superlative speed today, hence there is a dire need of a constant overhauling of the policies in the retail sector. This will in turn help create a more hospitable ecosystem for the online players wherein our contribution towards the economy will multiply several folds.” –Praveen Sinha, Founder and MD, Jabong.com
He added, “The government should also look at laying down some ground rules pertaining to boosting the e-commerce sector at the Union Budget.”
According to Vimal Sumbly, MD, Triumph Motorcycles India, ““The govt. in the upcoming budget should look at cutting down excise duty. This is necessary to not only boost the overall sentiments of the business environment but will also effectively aid the ‘Make in India’ campaign. Another step that Govt. can take to boost the industry would be to reduce the repo rate by RBI. This will boost investment in the economy and help the already existing companies by positively stimulating demand and also increase liquidity in the market.”
Commenting on the same Kenny Shin, CEO STAR CJ Network said, “Relaxation and/ or doing away with the FDI limit when it comes to home shopping and e-tailing will not only benefit Indian consumers but also prove pivotal in creating job opportunities in India. This will also boost growth momentum and benefit local manufacturers and traders. Introduction of Goods and Services Tax (GST) will help consumers, industry and the economy as a whole and will also make Indian products more competitive in the world markets.”
Sameer Parwani, CEO & Founder-Coupon Dunia asserted, “ E-commerce businesses are looking forward to various policy reforms and a clear taxation framework with the new budgets. The budget should also give an idea of the possible implementation of GST by 2016 which looks like a distant dream today but would profit the business highly. The industry is also contemplating some tax benefits and incentives which would increase trade and help develop the logistics arms. Allowing FDI in e-commerce would promote the interests of e-commerce in India. It would also help promote M&A in the coming year.”