A key demand from retailers is affordable financing. RAI highlighted the need for the government to announce lower interest rates specifically for retail businesses in the budget. “There is a need to provide lower interest rates to the retailers through the special announcement in the budget to assure easier financing for the retail businesses,” RAI stated.
The association proposed the creation of a special fund, facilitated by the Small Industries Development Bank of India (SIDBI), to help independent retailers across the nation. This scheme could provide low-cost loans and relaxed regulatory guidelines to millions of small businesses, addressing a critical gap in financing options.
Budget 2025: A catalyst for National Retail Policy
Retail is one of India’s largest employment-generating sectors and a significant contributor to GDP. Budget 2025 could be a turning point for the sector, driving formalisation, increasing consumption, and fostering economic resilience amid global uncertainties. Targeted measures to support retailers would not only benefit the industry but also help meet the government’s broader economic objectives.
The RAI also urged the government to expedite the implementation of a National Retail Policy, which has been in discussion for several years. “There is a need to expedite the formulation and implementation of National policy. We believe that such a step would provide a substantial boost to the retail sector and facilitate ease of doing business,” the association noted.
Budget Priority: MSME benefits for retailers
The RAI recommended extending all MSME benefits to retail and wholesale traders. While these businesses are included under MSMEs and can register on the Udyam Registration Portal, their benefits are currently limited to priority sector lending. “We recommend that retail and wholesale traders should be eligible for all benefits available to other MSMEs,” the memorandum emphasized.
Budget 2025’s role in taxation
The association also warned the government against potential GST hikes on price-sensitive goods, including apparel, footwear, handbags, cosmetics, and watches. “Such increases may jeopardise the formalisation of trade, encouraging a shift toward unorganised markets,” RAI stated. Instead, the association advocated a balanced approach to safeguard the formal retail ecosystem and maintain consumer confidence.Highlighting the importance of the food and beverage (F&B) retail sector, the RAI suggested recognizing it as an essential service. “F&B retail sector needs to be considered as a priority and an essential service. Subsidies and benefits should be given on land rates and other necessities such as electricity,” the RAI said, stressing the need for government support to reduce operational costs.