The Confederation of All India Traders (CAIT) has stated that the National Retail Trade Policy will not be effective without the implementation of an e-commerce policy and codified rules and regulations for e-commerce trade. The statement, issued by CAIT President B.C. Bhartia and Secretary General Praveen Khandelwal, said that the National Retail Trade Policy will be a welcome step in boosting India’s retail trade, but an e-commerce policy is essential to ensure its success. The DPIIT’s initiative to roll out the National Retail Trade Policy has been met with a long-pending demand of CAIT, however, stakeholders must be taken into confidence before implementing the policy.
The retail trade in India has four verticals: corporate retail, non-corporate retail, e-commerce, and direct selling. Therefore, the National Retail Trade Policy should have a consolidated and comprehensive policy that allows all four verticals to work in tandem and prevent any overlapping. Unfortunately, the retail trade in India is the only vertical that does not have a separate ministry or policy, despite being a Rs 130 lakh crore annually market with a 10% growth rate every year. Thus, the National Retail Trade Policy will be a booster for the economy and trade and commerce of the country.
The Indian retail trade market is conducted by traditional retailers, which make up about 80% of the market. Corporate retail accounts for about 10%, e-commerce accounts for about 7%, and direct selling accounts for about 3%. Therefore, CAIT has demanded that the National Retail Trade Policy should have a comprehensive policy to ensure that all verticals are treated equally and no overlapping is allowed.
To protest against the alleged violations of the FDI policy and the high-handedness of foreign-funded e-commerce companies, CAIT staged a Holi burning of an effigy at Ghantaghar, Chandni Chowk, New Delhi. CAIT has also urged the government to investigate the business modules of e-commerce companies since they are showing huge losses every year but are still continuing with their business activities. It appears that these companies are transferring huge amounts to their native countries in the shape of royalty and avoiding tax obligations by showing losses in India.
The implementation of a National Retail Trade Policy is a welcome step in boosting India’s retail trade. However, it must be accompanied by an e-commerce policy and codified rules and regulations for e-commerce trade. CAIT has demanded that all stakeholders must be taken into confidence before implementing the National Retail Trade Policy to ensure that all verticals of retail trade are treated equally. It is high time that the retail trade in India had a separate ministry or policy as it is a crucial contributor to the country’s economy and trade and commerce.
