The Modi government recently completed two glorious years of governance. Since the government took over the throne in 2014, there have been several changes in the country. The ruling government has taken various initiatives that have had different impact on various fields and sectors. One of these sectors include Retail. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of India’s GDP. The sector which is expected to grow 25 per cent annually has strong hold on the economy. The government has taken various initiatives to boost the retail community in the country.
Some of the initiatives include:
- ‘Start-up India, Stand-up India’ initiative has various laws and policies related to retail sector
- 100 per cent inflow of foreign direct investment (FDI) is said to revive the sluggish retail scenario
- The REIT tax structure has become less complex thereby giving sigh of relief to Indian retailers
- The government’s push towards the passage of GST in the Parliament will further help in growth of India’s retail sector
Indian retail community has been a good recipient of the policies introduced by Modi government. The laws and policies related to retail sector under the ‘Start-up India, Stand-up India’ have been well received by the retail community. These policies enable the retailers to grow in times when e-commerce is taking the market with a storm. Also, the 100 per cent inflow of foreign direct investment (FDI) will bring in the much needed funds required for the development of the sector. They’ve also made the REIT tax structure less complex, this will facilitate retailers to splurge the funds saved from tax on other important verticals. For example marketing, the retailers and merchants can spend more on how they want to position their brands in the market or uplift it amongst the competitors. Last but not the least; the government has been struggling to push GST bill in the parliament which has various interesting factors in store for Indian retail sector.
Time and again, the Modi government has been instrumental in revitalizing the economic sentiments of the industry. The economic stability, liberalization of the FDI policy and improving consumer sentiment – is expected to help global brands witness a very conducive environment for investment into Indian retail. At the same time, Indian retailers have high hopes with the passage of GST bill which aims at achieving corporate control over democratic mechanisms. These initiatives by the government are expected to bloom the retail industry. The Indian retail sector is estimated to grow at a CAGR of 13 per cent to reach US$ 950 billion by 2018.
The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. With the Modi initiatives, we hope the retail industry is able to bloom and grow in the coming years.
Author of this article is Mr. Rahul Jashnani, MD, Jashn
Mr. Rahul Jashnani succeeded the flagship initiated by his father CK Jashnani with Modern Silk House in Lucknow. Born in Mumbai, Mr. Rahul Jashnani studied in St. Francis College & HR College of Commerce and Economics. His father, CK Jashnani has been a major source of influence in his career. In the year 2003, Jashn carved a niche for itself in fashionable ethnic wear. Its inimitable designs have rocked the celebrity world and Indian and International fashion scene.
Earlier, they faced difficulties, as more talent and funds were needed to scale the business. It was difficult to get stores in malls as the brand was lesser known. However, Mr. Rahul Jashnani with the guidance of his father, turned the challenges into opportunities. Jashn went on a hiring spree as the business scaled. And today it is known as a women’s lifestyle ethnic wear brand which has over 80 stores across 33 cities and is located in the best malls and some of the finest high street locations of India and 3 stores in UAE; 1 in Dubai & 2 in Abu Dhabi. They are also present on Jabong, Myntra, Snapdeal, Flipkart, Amazon and their own site – Jashn.in. Their design team is always in sync with the latest in trends in India and abroad. The products range from beautiful & rich sarees with prints and delicate embroideries, elegant salwar kameez suits, trendy ready-to- stitch pieces, lehengas.
Mr. Rahul Jashnani aspires to inspire other entrepreneurs – Think Big. Take risks, be open to change and adapt with times.
He believes to be an entrepreneur one should possess skills like – Communication, Branding, Sales, Strategy, Finance. Moreover, he believes ‘Determination conquers all’.
Read more about Startup India
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