Government Puts National Retail Policy on Hold for Targeted Reforms

New Delhi, Jul 29 (KNN) The Indian government is stepping back from finalising a National Retail Trade Policy, choosing instead to emphasise real‑time initiatives like the Open Network for Digital Commerce (ONDC) and the recently constituted National Traders’ Welfare Board, according to officials familiar with the matter.

Until 2023, the Ministry of Commerce and Industry had drafted a detailed retail policy, crafted through consultations with state governments and industry bodies.

The plan proposed various reforms: reducing licensing and compliance burdens, enabling unified approvals across states, decriminalising minor infractions, facilitating access to affordable credit, and creating a single-window system for registrations and inspections.

Yet, government sources now believe that many of those proposed actions are being implemented through existing initiatives.

“A policy is a set of actions, and those actions are already being taken,” one insider said, referencing ONDC and the welfare board — reducing urgency for a standalone national policy.

India’s retail sector accounts for nearly 12 percent of GDP and represents the country’s third-largest economic segment.

Experts note the lack of a unified framework across retail formats has led to fragmented growth and regulatory inconsistencies, particularly where state-level rules remain outdated or unclear.  

Some states—including Maharashtra, Karnataka, and Andhra Pradesh—have rolled out their own retail policies.

Nevertheless, the absence of a national-level strategy remains a structural concern, particularly in enabling modern retail infrastructure and improving supply-chain efficiency.

Looking ahead, officials expect the approach to remain focused on targeted interventions. These include supporting local businesses, simplifying licensing, boosting digital inclusion via ONDC, and improving welfare provisions for traders.

With these measures, the government hopes to streamline trade and modernise India’s retail landscape — without enacting a sweeping policy framework at this time.

(KNN Bureau)