Harkirat Singh, Managing Director of Woodland says that the Indian retail sector has gone through a major transformation over the last decade with a noticeable shift towards organized retailing. However, the sector is plagued with business challenges such as inadequate physical infrastructure, inefficiencies in supply chain, complex regulatory environment, shortage of skilled manpower, he said.
Here's what Singh says he expected from Budget 2015:
Getting recognised status for manufacturing
"Even today there seems to be lack of support from the banking and financing sectors. Small retail groups still use parallel means of finance like traditional moneylenders. Getting recognized status would provide better access to funding, leading to a better process," Singh said.
Marginal concession has failed to attract any new investments in setting-up of new factories and Immediate addressing is important to eventually help in making India a great manufacturing hub, he said.
"Retailers are expecting an announcement of implementation of Goods and Services Tax (GST). GST should subsume all indirect taxes, including Road Tax, R&D cess and octroi, etc., and help retailers reduce the cascading effect of taxes," he said.
Realign tax slab rates
"The Union Budget is expected to lay emphasis on the realignment of slab rates. Friendlier slab rates would increase cost of living and inflation, bringing in greater purchasing power and allowing for increased disposable income. As the retail market is affected by the consumer's buying power, measures would have to be taken to curb inflation," he said.
Increasing employment incentives
"The retail sector is also expected to generate huge employment opportunities but would require incurring significant employment-related costs. The upcoming Union Budget must look to provide solutions for employment incentives and deduction of employment costs," Singh said.
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Updated Date: Feb 21, 2015 12:46:08 IST