The Indian retail market is expected to cross $1 trillion mark by 2020 and a bulk of this business will be driven by fashion and apparel business. As customer spending increases, the fashion retail segment has also seen a huge uptake in recent times.
Devender Gupta, Founder of Inceptra Lifestyle, which holds the license for Tom Tailor brand in India, feels that the interim budget will hopefully give this domain more thrust, by increasing the spending power of customers as well as reducing tax rates.
MORE INCENTIVES EXPECTED
This is a golden pre-election opportunity for the ruling party to live up to their promise of good things that are yet to come. The government may restrain itself from announcing path-breaking changes in the budget, but lowering of lax rates is a definite thing to happen.
It may restructure MSME dud loans, provide more incentives to lift the retail sector and generate employment. It is expected that the announcements from the Interim Budget will ensure that there will more money in the consumers’ hands.
Rationalization of tax rates and single rate GST is expected for many industries. A single-point GST will prevent economic distortion and reduce inter-state variation. Also, with the government’s efforts to boost the Digital India campaign, we can expect further motivation for and upliftment of digital mode of transactions.