Top Story


Home >> Media - Others >> Article

Budget Special: Retail industry seeks industry status and FDI

Font Size   16
Budget Special: Retail industry seeks industry status and FDI

Though the Retail and Franchising industry is undergoing a boom, and has tremendous potential in generating jobs and contributing to economic growth, it has been on the backburner of the Government's list of priorities. Will Budget 2005 finally take a long overdue look at this burgeoning sector? After all, organized retailing is a sine qua non of development, and malls and hypermarkets are the ultimate parking places for the best of brands. The exchange4media team spoke to some key retailers to find out their wishlist for Budget 2005.

Raghu Pillai, President and Chief Executive, RPG Retail

Any step that the government takes to put more money in the hands of the consumer, and any step to improve the prevailing infrastructure will help the retail industry. As far as the wishlist for the retail industry is concerned, we would want FII investment in Retail to be allowed, as it would give the segment its due, enabling a number of choices for the organized Retail industry to source capital.

The Budget would also do well to recognize Retail as an industry. Several segments have been recognized by past finance ministers including cinema.

The Budget would become more meaningful if States are incentivised to rationalize property taxes, rental, registration and other municipal taxes so that property transactions become more transparent.

B. S. Nagesh, MD & CEO Shoppers' Stop

The first expectation is that the government should recognise the contribution of the retailing business in GDP and its role in growing consumption and in turn the economy. The last 12 months have really brought into focus the role of organized retailing whether it is through retail stores or development of malls.

The second expectation is to give Retail industry status. Treat retailing and shopping in line with hotels and use the retail industry to promote tourism and consumption. But the following benefits will have to be provided for this to happen: Permisssion for import of duty-free capital goods under EPCG as in the case of hotels against foreign exchange earned from customers under deemed exports. And allow FDI in Retail up to 26%.

Sharad Batra, Franchisee, Nirula's

The government has so much to offer to the Franchising industry but no serious thought is being given into it. There is talk of FDI in retailing, which can result in more money being pumped into the Indian economy. The only loophole in this industry, I feel, is the lack of authentication for the investors. With so many brands on an expansion spree, there is no dearth of options available to the franchisee. So there is a need for an authority that can act as a legal evaluator for franchisees.


Arati Singh, Channel Head, NDTV Good Times, opens up on how she loves to go on adventurous trips on a typical weekend.

In week 9 of BARC ratings, the channel led the lifestyle space with 1206 million impressions followed by TLC, FYI TV18, Food Food and Fox Life

During his brief visit to India, Ronen Mense, Vice- President- Asia, AppsFlyer, spoke to exchange4media about app marketing and the new trends one can witness in mobile marketing.

Neha Kulwal, CEO, Admitad, talks about the future of affiliate marketing and the company's growth over the years

The campaign has urged all women to go for an early detection of breast cancer.

The sticky banner appears to show up in YouTube pre-roll ads of other brands, like a standard in-video banner. And the adhesive power of the banner is so strong, that even the characters in the ads ca...

Conceptualized and executed by GREY Group, the latest campaign for ENO demonstrates how the sudden onset of acidity can not only disrupt an otherwise fun moment, but has the potential to derail the ce...