Budget 2025: Retailers seek relief in India's Budget through low interest rates

economictimes.indiatimes.com:

India Budget: As India prepares for Budget 2025, retailers are calling for measures that could transform the sector, including low-interest financing, tax relief, and a faster rollout of the National Retail Policy. The Retailers Association of India (RAI), in its pre-budget memorandum, urged the government to use the Union Budget for FY25-26 as a platform to address structural gaps, boost consumption, and improve ease of doing business. These changes, the RAI stated, would bolster consumer sentiment and support growth in the retail sector.

A key demand from retailers is affordable financing. RAI highlighted the need for the government to announce lower interest rates specifically for retail businesses in the budget. “There is a need to provide lower interest rates to the retailers through the special announcement in the budget to assure easier financing for the retail businesses,” RAI stated.

The association proposed the creation of a special fund, facilitated by the Small Industries Development Bank of India (SIDBI), to help independent retailers across the nation. This scheme could provide low-cost loans and relaxed regulatory guidelines to millions of small businesses, addressing a critical gap in financing options.

Budget 2025: A catalyst for National Retail Policy

Retail is one of India’s largest employment-generating sectors and a significant contributor to GDP. Budget 2025 could be a turning point for the sector, driving formalisation, increasing consumption, and fostering economic resilience amid global