National Retail Trade Policy

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    In News

    • Recently, The Department for Promotion of Industry and Internal Trade (DPIIT) has sought the views of 16 departments and ministries on its draft national retail trade policy.
      • It is aimed at the overall development of all formats of the sector.

    About National Retail Trade Policy

    • Data: 
      • India is the world’s fifth-largest global destination in the retail space.
    • Body: 
      • The policy has been envisioned by DPIIT to formulate the national retail policy to promote the growth of domestic trade.
    • Aim:
      • It focuses on formulating strategies to provide a globally competitive and sustainable environment for overall development of retail trade through targeted efforts.
    • The objectives of the policy includes:
      • Ensuring easy and quick access to affordable credit.
      • Facilitating modernization and digitization of retail trade by promoting modern technology and superior infrastructural support.
      • Development of physical infrastructure across the distribution chain.
      • Promotion of skill development and to improve labour productivity.
      • Providing an effective consultative and grievance redressal mechanism for the sector. 

    Major Challenges in this sector

    • Unorganised market: 
      • India’s market for retail trade is largely unorganised.
    • High complexities
      • A number of laws, compounded by state-level variations in implementation, create immense complexity for retailers, especially those with a pan-Indian footprint. 
      • This makes it imperative for retailers to ensure a comprehensive pan-India policy is in place.
    • Long procedures
      • If we want to set up a store in organized retail, we probably need approvals from 40 different authorities. 
      • There could be a single window clearance.
      • States like Telangana have actually adopted it but it needs to be adopted across the country. 

    Significance of the policy 

    • Promote ease of doing business
      • This policy will streamline the retail trade and promote ease of doing business in the retail trade sector. 
    • E-commerce
      • It will promote e-commerce all over the country.
    • Employment generation
      • It will leverage retail trade as a tool for socio-economic development of the country.
      • A cohesive national retail policy can help generate 30 lakh more jobs by 2024. 
    • Skill development: 
      • It will encourage skill development and create more employment opportunities for all sections of society involved in retail trade.
    • Infrastructure: 
      • It will identify and address existing infrastructure gaps affecting the retail trade industry.
    • Investments
      • It will accelerate investment flow to underdeveloped regions across the country.
      • The retail industry is likely to see 10 per cent annual growth to reach about USD 2 trillion by 2032
    • Beneficial to all sellers
      • It will bring about a level-playing field for small sellers by providing them access to credit as well as help large, organized retailers with quicker approvals.
    • Women empowerment:
      • The retail industry is one of India’s largest employers of women which comprise around 25-30 percent of the total workforce.

    Way Forward

    • DPIIT is also working on formulating a national e-commerce policy to promote the growth of the online retail sector in the country.
    • A new industrial policy is also on the pipeline which will be the third industrial policy after the first in 1956 and the second in 1991. 
    • A cohesive retail policy built on the pillars of simplification, standardization, and digitalization will pave the way for significant growth and accelerate a short-term economic recovery

    Source: BS