Retailers Association Lauds Increased Disposable Income and Consumer Spending from New Budget

New Delhi, Jul 24 (KNN) In response to the recently announced Union Budget 2024-25, the Retailers Association of India (RAI) has expressed a largely positive outlook on the government's fiscal plans.

Kumar Rajagopalan, CEO of RAI, offered his insights on the budget's potential impact on the retail sector and the broader economy.

"The government has tried to strike a balance between populist and policy measures," Rajagopalan stated. He commended the budget's focus on empowering the middle class and rural population, highlighting several key initiatives that could boost consumer spending.

Among the measures praised by RAI were increased monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions.

Rajagopalan believes these changes will lead to higher disposable income, potentially stimulating consumption growth and benefiting the overall economy.

The reduction of duty on gold, precious metals, and mobile phones was singled out as particularly beneficial, with Rajagopalan suggesting it could provide "a significant boost to these sectors, particularly during the festive season."

RAI also applauded the government's commitment to skilling and employment support. Rajagopalan noted that initiatives for youth employment and skilling programs would help ensure a future-ready workforce in the retail sector.

The budget's focus on MSMEs and startups received positive attention from RAI. Rajagopalan pointed out that enabling more lending and abolishing angel tax were positive steps towards realising the potential of these businesses. He also welcomed efforts to simplify taxes and improve compliance.

One specific measure highlighted was the Employment Linked Incentive, which offers reimbursement to employers up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee. Rajagopalan described this as "a welcome move."

The CEO also praised initiatives aimed at supporting women in the workforce, such as the establishment of working women's hostels and creches in collaboration with industry. This measure was seen as particularly beneficial for women working in the retail sector.

Finally, Rajagopalan noted the budget's emphasis on developing infrastructure for shopping in urban areas, calling it "a significant step forward."

Overall, RAI's reaction suggests that the retail sector sees the 2024-25 Union Budget as a balanced approach that addresses several key areas of concern while potentially stimulating economic growth through increased consumer spending.

(KNN Bureau)