Union Budget 2022-23: Funding and execution of plans to improve logistics with labor and better technology needs time to boost retail
Indian Union Budget 2022: The retail sector accounts for 10% of India’s GDP, according to the latest IBEF report. News18
The retail sector accounts for 10% of India’s GDP according to the latest IBEF report, and with many new entrants to the industry, especially in retail technology, the sector is changing faster than never.
However, this growth had slowed down at the start of the pandemic, that is to say during the January-March quarter. This was followed by global lockdowns which made the year even worse for many players. The space was, for a time, left unforeseen, but it quickly accelerated, the results of which could be seen during the holiday season, particularly in September 2021.
To meet the new challenges posed by COVID-19, gamers have given in to technology; even simple tactics such as videoconference sales with customers ended up helping smaller regional players even more.
The retail sector in India also owes much of its growth to an unorganized segment that thrives within it. A total of 8 percent of employment in our country is due to the existence of this sector.
The upcoming 2022 budget should ensure that we have an established plan in place which must include structure for any other health emergencies that may arise in the near future, as global lockdowns have not proven to be viable solutions in any respect. We have seen immense job and livelihood losses and store closures for small players.
Our expectations of the Indian government in the 2022 budget are:
Digitization set to reach regional retail startup hubs
We have seen the growth of a plethora of tech startups supporting the country’s retail setup. Effort is needed to ensure that these technologies also reach regional retail setups. India’s Tier 2 cities are becoming a hub for startups serving the hyperlocal economy, which is a huge opportunity that can only be met by these emerging setups.
Reduction of duties on raw materials
The PLI system, launched by the government in 2021, must also be extended to the other sectors that make up the retail trade. The grants and benefits offered under the program will boost the manufacturing industry, thereby contributing to job creation. During the pandemic, we have seen a number of startups enter the retail space and will now need such a boost to grow their business. The benefits of the scheme are also expected to result in reduced duties on raw materials that must be imported into India to produce quality products.
Omnichannel approach to the retail sector
The government needs to speed up the process by treating the online and physical retail sectors the same. There must be a single window and similar authorizations for both. Online retail startups have come into play to boost retail as a whole, and now it would be prudent to put policies in place so that the dualities go hand in hand.
Importance of job creation; better feelings from consumers
Job creation is the most important boost needed for the retail sector to perform better. Much of the burden during the shutdowns has been borne by the retail sector, where retail hours and vendor opening hours have been severely limited, putting pressure on profits. Job losses and the shift of people’s disposable income towards health care tightened the market until last holiday season when we saw better sales due to pent up demand. This flow of action must continue and the government must ensure that consumer confidence remains high.
Logistics, the last remaining barrier in retail
Logistics is the backbone of any industry, and with so much talk about logistics parks etc., now is the time to act so that it is not the last obstacle to building a better industry. retail. The 2022 budget must ensure the direction of new funds and the execution of plans to improve our logistics space, which must be coupled with the workforce and the best technologies that currently exist in the world.
The author is Vice President of Super Plastronics PVT LTD (SPPL), Indian brand holder of Westinghouse TV. Views are personal.
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