Will retail trade policy boost ease of doing business?

livemint.com:

Why do we need a pan-India retail policy? India’s offline retail market was estimated at $860 billion in 2022; it is expected to nearly double by the end of the current decade. Online retail, on the other hand, is a $70-billion market and is expected to grow at a rapid pace, according to a 2023 report by consulting firm Deloitte. However, the sector lacks a cohesive policy that governs retail trade pan-India.

While the country has clear rules and regulations that govern foreign investment in single as well as multi-brand retail trade, there is a need for a model policy that can be adopted by states to drive greater benefits for small and medium traders. What are the compliance issues? The retail trade in India is governed by many laws, including the Shops and Establishments Act, the Competition Act, the Consumer Protection Act, the Essential Commodities Act, and the Legal Metrology Act. In many cases, retailers need to obtain between 16 and 25 licences to open a store, according to a 2020 CII report.

Moreover, retailers need permits and licences from central as well as state governments and local authorities before opening and operating stores. The large number of laws, along with state-level variations in implementation, pose complexity for retailers. What are retailers seeking? Retail associations have been batting for a comprehensive policy for many years.