[ad_1]
New Delhi: Finance Minister Nirmala Sitharaman is set to present the federal budget for fiscal year 2023-24 in parliament on 1 February. Ahead of the budget, the country’s top retailers share their expectations for the industry.
Although 2022 was a largely COVID-free year, the retail industry, which contributes around 10% to the country’s GDP, is all but unaffected by global macroeconomic conditions that lead to inflation, a slowdown in the rural economy, and high raw material prices. I was annoyed. Supply chain disruption. Against the backdrop of these challenges, the retail department has a long wish list for his 2023 budget.
Demand creation measures
The Indian Retailers Association (RAI) said in its recommendations submitted to the central government for the Federal Budget 2023 that the budget should prioritize growth-oriented measures to stimulate demand and consumption. . Supportive policies, simplified regulation, skills development and simple Goods and Services Tax (GST) standards should be outlined to support the development of the retail industry.
Saugata Gupta, MD & CEO, Marico said: middle and bottom of the pyramid. ”
While noting that the Reserve Bank of India (RBI) has made great efforts to keep inflation under control, Gupta said it will continue to build rural infrastructure that will revitalize the rural economy through long-term job creation. I stressed the need to push forward.
Anuj Poddar, MD and CEO of Bajaj Electricals, underscored the measures expected to boost consumer sentiment and demand, while Finance Ministers have announced a review of individual taxable slabs and other measures to boost the consumer economy. He commented that it is necessary to consider specific measures such as direct means of Lower fuel tax.
The country’s annual retail inflation rate eased to 5.72% in December on the back of falling food prices. RBI Governor Shaktikanta Das recently said inflation had started to ease and the current account deficit was manageable and within feasible parameters.
Control rising raw material costs and reconsider tax rates
Speaking on the FMCG sector, Manish Agarwal, director of Bikano, Bikanervala Foods, said that some raw materials are particularly important for the FMCG segment, even as commodity prices show signs of softening. and the need for cooling of the input.
“Predictability and stability of input prices is important for any sector, including the FMCG sector, and the budget should ensure that,” he commented, noting that the budget should be prepared for rising prices of packaging materials. also need to be addressed. Almost 10% of the input price of FMCG products.
Commenting on the textile sector’s expectations from Sitharaman’s budget, Raymond said the announcement of Reimbursement of Duties and Taxes on Exports (RoDTEP) among expectations from the 2023-24 Union Budget. Under the pre-approval scheme he RMG and home furnishings top the list. Duty-free facilities for importing certain trimmings and ornaments for garment export should be restored.
He also said GST exemption is expected for international outbound shipments and to tackle soaring cotton prices domestically, the government will impose a 5% basic duty (BCD) and additional tariffs imposed on imported cotton. He added that abolishing the fee should be considered.
Amit Jatia, Vice Chairman of Westlife Foodworld (McDonald’s India W&S), said of quick service restaurants:
Additionally, Jatia said the industry expects some easing of the ITC (input tax credit) to boost growth in the sector. His current GST rate for restaurants is he is 5% and there is no input tax credit. He commented that this is a relative disadvantage for the restaurants and food industry, with other sectors receiving input credits and restaurants and his QSR chain being the only industry in India responsible for GST inputs. Did.
Describing key demand in the consumer durables segment, Rakesh Khanna, MD and CEO of Orient Electric, said the industry expects the government to reconsider basic products such as electric fans, which are subject to an 18% tax. said it does. Khanna said input cost pressures and mandatory star labeling standards have led to further price increases, and his GST reduction for fans will help contain price increases.
“We feel the need to reduce the GST rate across energy efficient products to help people switch to these products.”
Satish NS, President of Haier Appliances India, shared similar expectations about the GST relaxation of air conditioners from the upcoming budget. Meanwhile, Usha International CEO Dinesh Chhabra said the sector expects a reduction in his GST rate on cookware and appliances.
“Retail policy has been in the draft stage for years. There have been encouraging developments recently. It is time for the government to gather information from stakeholders and make decisions.”
Increase productivity and ease of doing business
PS Murali Krishna Iyer, Country CFO of IKEA India, said the government will reconsider lowering the price of raw materials and continue to offer PLI schemes and investment-friendly initiatives in the home furnishings sector to boost production. I commented that I would. He added that facilitating business will be key to attracting more investment to India.
The president of Haier India said, “…strategic actions to strengthen India’s manufacturing sector are essential to maintain India’s current trajectory of stable economic growth.”
Orient Electric’s Khanna commented that the government is likely to continue initiatives such as the Make in India and PLI schemes to boost local manufacturing and job creation. He added that given the ongoing global semiconductor shortage, the budget could further incentivize semiconductor chip manufacturing in India, offering cost advantages and an uninterrupted supply of chips to Indian industry. I was.
Vineet Jain, COO of V Mart Retail, said this year’s budget should make it easier to do business and boost manufacturing, citing weak consumer spending, especially in the middle class. rice field. In addition, the government should simplify the corporate tax structure, promote the ‘Vocal for local’ initiative and lower his GST on rentals, he added.
[ad_2]
Source link
