The economic growth of India has seen many turbulent times in the last year. While the first half of the year was buoyant promising nearly double-digit growth, the global recession did not leave the economy untouched in the second half of the year. The retail sector has also been sailing through difficult moments in the last few months and is now looking up to the new government to take the growth agenda forward.

The prime concern remains ensuring sustained economic growth by implementing various fiscal measures. The government needs to put in place measures that will increase the consumption level in the country and, thus, help the business.

1. The most significant development for retail sector would be granting of industry status by the government. Providing industry status is the first basic step needed for reforming the Indian retailing sector. The advantages of such a status are greater focus on retailing development, fiscal incentives for retailing industry and availability of organised financing and establishment of insurance norms.

2. We expect some softening in the tax regime. The local taxes, which account for anywhere between 4 per cent and 6 per cent are a deterrent in identifying the optimum cost of the garments. The industry should be reimbursed these costs to ensure they remain competitive globally.

3. In the December package for the industry, the government had provided additional funds of Rs 1,100 crore to ensure full refund of terminal excise duty/central excise and additional allocation of Rs 1,400 crore to clear the backlog of Technology Upgradation Fund Scheme (TUFS). The reduction in central excise duty affects only man-made fibre industry; the additional allocation for TUFS (funds) in effect covers past dues only up to June 2008 and in reality is only payment of dues which was long overdue. Since the crisis started only post August 2008, the quantum of dues are the highest in this period and retailers need relief in the form of a two-year moratorium on term loan repayments falling due in this period.

4. The Custom duty on import of textiles machinery, accessories and fabrics should be abolished allowing free import at nil rates.

5. Abolition of Service Tax from property, as this would enable retailers for expanding their operations freely reaching out to their audience without much difficulty.

6. Special incentives to garment manufacturers and retailers through banks in order to enable them to improve their operational facility and meet the ever increasing demands of the progressive customers.