Budget 2024 Expectations: As Union Finance Minister Nirmala Sitharaman is all set to present the Union Budget on February 1, 2024, the retail sector expects big from the Central government.
Industry experts said that reducing the tax burden for retailers would not only encourage consumer spending but also improve financial strength of enterprises in the sector. Other experts said along with the tax relief, the retail sector is expecting for selective incentives to promote sustainability and innovation.
Reduction in Tax in Retail Sector
Speaking to India.com, Ridhima Kansal, Director of Rosemoore, said the retailors are keen to hear of a budget which recognizes their economic contribution and would look for reductions in taxes as ways it can encourage growth and long term viability.
“The primary incentive, which could trigger a recovery in the retail sector, is reduced taxes. Reducing the tax burden for retailers would not only encourage consumer spending but also improve financial strength of enterprises in the sector. This works because when retailers can keep a higher portion of their revenue, they can invest in modernization, technological adoption and employee training thereby building up their competitiveness in an ever changing market,” he said.
Incentives To Promote Sustainability
He added that along with tax relief, the retail sector is hoping for selective incentives to promote sustainability and innovation. “These may consist of rewards for embracing green guidelines, investing in IT infrastructure and collaborating with nearby suppliers. Such measures do not only cater to the changing tastes of consumers but also make the retail industry leaders in socially,” he stated.
Gunjan Taneja, Co-Founder of UClean, said, “Overall, we expect a forward-looking Budget that fosters innovation through tax breaks, dedicated incentives and enabling policy regulations to fuel the growth of the startup ecosystem.”
She said the much-awaited Union Budget 2024-25 should provide a fillip to the retail sector and the startup ecosystem. She added that the Union Budget should priorities initiatives to boost consumption and control inflation.
Focus on Electronic Manufacturing
Pawan Kumar, CEO of Elista, said, “As we anticipate the upcoming Union Budget, we’re hopeful for strategic initiatives that will redefine the technology landscape in the fiscal year 2024-25. The Union Budget should accelerate electronic manufacturing, and drive widespread tech adoption to position India as a global powerhouse in tech manufacturing, fintech, and AI-led advancements.”
He added the government initiatives focused on streamlining the setup process of component-level manufacturing facilities and providing specialized insights for electronic manufacturers will catalyze advancements in the technology manufacturing sector.
Focus on Small Retailers in Tier 2, Tier 3 Cities
Tejpal Singh Shekhawat, Founder and CEO of Kalyanam Furniture, said “As we get ready to make a budget for 2024, it’s really important that policymakers should pay attention to small retailers in tier 2 and tier 3 cities. This is because these cities contain stores that can grow big and compete with more established businesses.”
He added that the Centre in the budget should include ways to encourage teamwork between second-tier city stores and bigger ones. “This is important for growth. Setting up helpful connections between small and big stores can help make a retail world that works together better. This teamwork could lead to a great situation, where smaller stores can get resources and smarts about what sells from big shops, while large ones get more fast action and know-how of their local area stuff.”
Significant Cut in GST Rates
HS Bhatia, Managing Director of Kelwon Electronics & Appliances Pvt. Ltd., and DAEWOO India, said, “As we looking forward for Union Budget 2024, to push retail sector industry is looking for a significant cut in GST rates for retail products, ideally to 12% or 5%, aiming to enhance affordability, encourage consumer spending, and fuel industry expansion”.
He said in addition, he is looking for increased governmental support for domestic retailers through initiatives like PLI and incentives for Make in India products.