DPIIT seeks feedback on Draft National Retail Trade Policy

DPIIT seeks feedback on Draft National Retail Trade Policy

Department for Promotion of Industry and Internal Trade (DPIIT), under Ministry of Commerce and Industry has invited views on Draft National Retail Trade Policy from 16 departments ans ministries. The policy aims to create a competitive and sustainable environment for the growth of retail trade sector by developing innovative strategies and measures.

Objective of policy

• Quick and easy access to affordable credit for retail trade business, in order to support their growth and development.
• Improving physical infrastructure throughout the distribution chain.
• Supporting the modernisation and digitisation of retail trade through the adoption of modern technology and infrastructure improvements.
• Enhance skills and productivity of retail sector employees through skill development and training programs.
• Establishing a framework for consultation and grievances redressal mechanism within retail trade sector.

Significance of retail sector in India

India’s retail sector is the third largest sector in country’s economy. It is highly diverse, with a mix of traditional and modern retail format, including small family-owned shops, large departmental stores and e-commerce platforms.

It accounts for over 12% gross value contribution to India’s GDP. Retail sector is employing more than five crore people and also provides indirect employment in adjacent sectors like logistics , warehousing, construction and packaging.

India ranked as the fifth-largest destination in the global retail market.

Retail sector prospects for future

According to recent analysis by by the Boston Consultant Group (BSG), the retail sector in India is likely to see 10% annual growth rate and projected to reach a value of $2 trillion by 2032.

A 2020 report by CII-Kearney states that implementing a comprehensive national retail policy in India could result in the creation of an additional 3 lakhs jobs by 2024.

Government initiatives to promote retail sector

• Promoting access to finance through initiatives such as Pradhan Mantri Jan Khan Yojana and Pradhan Mantri Mudra Yojana.
• Government has permitted FDI of up to 51% in multi brand retail and 100% in single brand retail.
• Creation of special economic zone for retail and other businesses.
• Improving infrastructure through programs such as granting infrastructure status to warehousing and logistics, establishing multimodal logistics parks and Smart Cities Mission.