Will Budget 2023 fulfill what Indian Retail Industry needs? Here are the expectations

The Indian retail sector is currently going through significant transformations. This has a lot to do with both the emergence of e-commerce and the dramatic drop in physical storefronts for several market segments. Presently, numerous manufacturers concentrate solely on online sales and market share, while only a handful have been able to contend with big stores as well as retain a dual visibility. Becoming available on the web enables regular as well as direct customers' opinions, which aids in the process of production as well as overarching client service, which is something the retail store appears to lack.

Locally grown brands are poised to succeed, as the Indian consumer continues to embrace make in India products across retailers. A new generation of entrepreneurs and tycoons has always been searching to revolutionise the Indian economy and manufacturing industry, thereby improving our country's production and infrastructure capabilities.

The government might also offer low-cost credit to small-scale retailers and loosen up some industry regulations. The proposed plan, which might be officially confirmed in the union budget upcoming month, intends to do better within a smaller physical retail market that has been impacted by the admittance of businesses including such Reliance Industries, Amazon, Flipkart, and others.

According to a 2022 RAI report, the proportion of e-commerce in India's retail space is expected to increase from 7% to nearly 19% by 2030.

According to industry players, the union budget for 2023-24 may benefit the sector significantly. “Due to factors such as urbanisation and income growth, the Indian retail market is expected to grow to USD 1.4 trillion by 2030, up from USD 0.80 trillion in 2020. Due to the pandemic crisis in 2020-21, the retail sector has faced one of its most difficult periods. This demonstrates that the sector requires a catalyst to revitalise.As a result, the Union Budget 2023-24 may significantly benefit the retail sector. With the fiscal 2023-24 budget approaching, we expect the government to implement a lower GST for consumer durables and lower compliance costs, which will benefit both the industry and consumers. Furthermore, the retail sector anticipates the implementation of a National Retail Policy, which will include facilitating modernization and digitisation through the promotion of modern technology and rapid infrastructural support,” said Raghunandan Saraf, founder, and CEO of Saraf Furniture. 

“As a result, the upcoming Financial Budget will be closely watched by offline retailers. We also anticipate that the Union Budget 2023 will provide a stronger and more sustained push, as well as the introduction of numerous measures in line with consumption policies. The Indian retail industry and private sector players are willing to invest more in building efficient and strong supply chain infrastructure and technological innovation with the right government support,” he asserted.

According to Dr. Deepak Jain, Founder, The Fragrance People, “This should also be an enormous reprieve to a large number of individuals working inside the  retail sector. The government is currently collaborating on a policy that will allow for easy credit at low rates of interest. Yet another option is to obtain affordable and simple loans against inventories. The policy would substitute a much comparatively simple online procedure for new store licensing and renewals. The govt. will indeed prioritise long-term development strategies such as job creation, infrastructure development, and increased rural progress.”

On budget expectations, Ridhima Kansal, Director, Rosemoore said, “Vast numbers of retailers could benefit from the impending Union Budget 2023, since this central government intends to unveil simplified regulations and convenient availability of credit for the industry. The authority is most likely to help millions of independent retailers across the nation by declaring low-cost loans and relaxing some industry guidelines. This action could assist retailers in stabilising their businesses as India confronts a potential economic recession in FY24, as well as reviving progress in the relatively smaller retail industry, which has been impacted by e-commerce behemoths such as Amazon, Flipkart, and others.”