Retailers Demand Lower Interest Rates and Policy Reform Ahead of Budget

The Retailers Association of India urges the government to lower interest rates for easier financing and expedite a national retail policy ahead of the budget. They recommend benefits to boost consumer sentiment and warn against GST hikes that could harm the formal retail sector.

The Retailers Association of India (RAI) has called on the government to lower interest rates for retailers, thereby easing financing and facilitating business operations as the budget approaches. In a pre-budget memorandum, the RAI highlighted the need for the Union Budget 2025-26 to drive demand and consumption by offering concessions like tax reductions, which would enhance consumer sentiment and help the retail industry.

The association emphasized the necessity of affordable financing options, urging the government to declare low-interest loans and formulate a special finance program with SIDBI to support millions of independent retailers nationwide. They also stressed the importance of expediting the National Retail Policy to streamline business processes and suggested that the retail sector be classified as an essential service, which would allow subsidies on land and utilities.

Furthermore, the RAI stressed the need to extend MSME benefits to retail traders and cautioned against the proposed GST hike on certain goods, warning that it could drive a shift towards unorganized markets. They advised a balanced fiscal approach to preserve the formal retail ecosystem and maintain consumer trust.

(With inputs from agencies.)