Dear Mr. Murli,
Kindly find below pre-budget quote on retail from Mr. Vijay Bobba, Founding CEO, i-mint.
Specific to growth sector, budget should focus on the following:
- Enabling easy access to affordable capital - With restrictions in FDI flows into certain sectors combined with global liquidity crunch and capital squeeze by domestic banks, the overall cost of capital has sky rocketed. Policies need to be put in place to address this issue. For example, in the retail sector, FDI is restricted to single brand stores. It is critical to allow FDI in multi brand outlets also. Not only will this move allow retailers to create price efficiencies which can be passed on to consumers, but brings in the know-how to improve retail infrastructure, such as supply chain and distribution management solutions
- Simplifying the Tax structure - Today we have differential VAT laws across states, besides additional taxes like Octroi in Maharashtra etc. There is a lot of wastage of public money in ensuring compliance with these laws leading to inefficiencies. At the same time, staggered costs are adding to the overall costs of businesses. There is an urgent need to streamline these various taxes with a uniform GST based taxation policies. This reduces productivity as well increases costs
- Reforms in labour laws - To strengthen the growth sector, it is important to revise the labour laws. There should be provisions to enable businesses to employ people even on an hourly basis. Of course, a minimum wage per hour to protect the rights of a worker is also required
- Education Reforms – In most of the growth industries in the growth sector, it has been a recurring theme that qualified resources are scarce despite a large unemployed pool. Most businesses are resorted to long periods of training even before an employee is put to use. This is adding to overall increase in costs and loss of productivity. IT sector is a classic case in point. Budget should therefore focus on reforms and policies in the education sector that focus on quality education
Warm Regards,
Anuja Shah
Blue Lotus Communications Pvt. Ltd.
4/33 Kamal Mansion,
4th Floor, Haji Niyaz Ahmed Azmi Marg,
Arthur Bunder Road, Colaba,
Mumbai 400 005.
Tel # 66522890-899 (D) # 66522820
(M) # 98206 17685
Email: anuja@bluelotuspr.com
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