CEOSPEAK: Raghu Pillai, Reliance Retail
"Instead of multiple taxation across all states, there should be one national tax for goods and services. The FM should prepone the GST from 2010-11 to the forthcoming Budget".
Chamber Speak
Ficci
The government should review the existing laws and make the system more conducive so that more domestic players can enter the field. The laws which need to be reviewed include Essential Commodities Act, Weights and Measures Act, Agriculture Produce Marketing Act, Prevention of Food Adulteration Act and Shops and Establishment Act.
Assocham
Industry status for the retail industry is the first basic step needed for reforming the Indian retail sector. The advantages of granting industry status to the retail sector are greater focus on retail development, fiscal incentives for retail industry, availability of organised financing and establishment of insurance norms.
EXPERTSPEAK: NV Sivakumar
Govt should grant industry status
Strong GDP performance, an increase in disposable income, a 300 million-strong middle class and changing consumer spending patterns are fuelling the Indian retail sector.
The current 3 per cent of organised retail is estimated to grow at a CAGR of 30-40 per cent over the next 10 years. With the growth of modern retail, the $350 billion sector will comprise a greater portion of GDP and generate further employment.
With the introduction of single brand retail and wholesale cash and carry, India is witnessing a number of foreign retailers who have entered or will enter this attractive market. Some of India's most prestigious business houses such as Reliance Industries, AV Birla Group, Tata also have impressive retail initiatives to offer.
The government, in order to boost retail sector growth should accord industry status and ease labour laws. In addition, the government should ease restrictions and draw a roadmap for opening the sector to FDI.
Further liberalising the retail industry will result in:
- Improving efficiencies in the supply chain
- Generating employment
- Enabling India to become a sourcing hub for the world's major retailers
The retail industry expects the following policy decisions by the government in the forthcoming Budget:
- Industry status for the organised retail sector. This would require lending norms to be fixed, passing of regulations and channelising retail-related issues through one single ministry
- Roadmap for a country wide goods and services tax
The author is leader, retail and consumer industry, PricewaterhouseCoopers
