Tuesday 7 July 2009 - All stories compiled and edited by Bhaswati Das
Goods and service tax (GST) and more disposable income in the hands of consumers are set to give the retail sector more sheen. GST will assist companies in the retail sector to rationalise their distribution centres, leading to cost and supply chain benefits. A uniform GST would enable big retail players to manage product distribution across India through fewer distribution centres. At present, most modern retailers have a distribution centre in every state.
“Higher disposable income in the hands of consumers as a result of tax benefits announced in the budget would spur consumption,” said Thomas Varghese, CEO, Aditya Birla Retail.
V Sivakumar, leader retail practice, PricewaterhouseCoopers India, said, “Select segments within the retail and consumer sector like branded jewelry and some consumer durables will witness some relief as duties are eliminated or reduced.”
Tax incentives for setting up infrastructure like cold chain facility and warehouses are positive signals. However, measures like relaxing FDI policy and accordance of industry status to retail could have made the sector more vibrant.
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