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Mint
a day ago
- Business
- Mint
Govt may put retail trade policy on back burner as India-US trade talks enter final leg
New Delhi: The Union government is likely to put the proposed National Retail Trade Policy on the back burner, a move seen as a conciliatory gesture towards Washington as negotiations for the India-US bilateral trade agreement enter the final stretch. The retail policy, which was first proposed in 2019, was meant to address structural challenges faced by brick-and-mortar traders and small businesses due to rising digitisation and platform-driven commerce. Shelving the policy may indirectly benefit major US-based retail giants—particularly e-commerce platforms and global retail chains like Walmart Inc.—by allowing them to continue operating in India without additional regulatory oversight. Domestic retail chains such as DMart, owned by Avenue Supermart Ltd, Reliance Retail Ltd, and Tata Retail Ltd would also benefit from the policy shift. With India's e-commerce policy, originally due in 2023,pushed to the sidelines, government officials said a separate retail policy is no longer necessary. Much of what the National Retail Trade Policy set out to achieve is already being implemented through decentralised platforms such as the Open Network for Digital Commerce (ONDC) and cooperative-led initiatives like the app-based taxi service 'Sahkar', said a person familiar with the government's thinking. 'A policy is a set of actions—and those actions are being taken," this person said, citing ONDC's success in leveling the playing field across sectors. 'Creating compliances when the purpose has already been largely achieved doesn't make sense," said a second person. Both of them declined to be identified as the government hasn't made a final decision yet. A US team of negotiators is scheduled to visit New Delhi in the second week of August to resolve the deadlock over contentious issues in the talks for the India-US bilateral trade agreement. India has made several gestures, starting with the Union Budget, to improve the trade climate, but feedback from the US suggests that its focus remains largely on pushing for exports and greater market access for GM maize and soy-based products. The US's dairy industry also has been lobbying for access to India's vast consumer market. Spokespersons of the ministries of commerce and consumer affairs, the Retailers Association of India, Amazon India, Walmart-owned Flipkart, Tata Group-owned BigBasket, DMart, and Reliance Retail did not immediately reply to emailed queries. A missed opportunity India's rapidly expanding organized retail sector is expected to reach $230 billion by 2030, Deloitte and the Retailers Association of India said in a joint report in February. The report added that private consumption in India had grown from $1 trillion in 2013 to $2.1 trillion in 2024 at a compound annual growth rate of 7.2%, surpassing the growth rates of the US, China, and Germany. A draft National Retail Trade Policy had been prepared to streamline and support the development of all formats of the retail trade sector in a harmonious manner, the ministry of commerce and industry informed the Lok Sabha on 22 December 2021. According to the ministry, the policy aimed to improve the ease of doing business, ensure easy and quick access to affordable credit, facilitate modernisation and digitisation of retail trade, and develop physical infrastructure across the retail distribution chain. The retail trade policy also sought to promote skill development to improve labour productivity, create large-scale employment opportunities, and establish a grievance redressal mechanism for the welfare of traders and their employees, the ministry had said. 'The policy has been in the works for a long time, and we have been waiting for it. The challenges in the sector—particularly those affecting MSMEs (micro, small, and medium enterprises))—must be addressed comprehensively through this policy," said Vinod Kumar, president of the India SME Forum. The second unnamed person quoted earlier pointed to ONDC, an initiative of the commerce ministry's Department for Promotion of Industry and Internal Trade, as an alternative. The digital platform offers a bouquet of services, including ride-booking, food-delivery, and e-commerce. 'Sellers are getting onboarded without any hassle, making the process seamless," said this person. According to data available on the ONDC website, about 64 million orders were placed in 2024-25 across 860 districts, and 166,691 vendors had been onboarded. Data for previous years was not available. Kuljeet Singh, chief financial officer at GI Group Holding, a staffing solution provider in the retail sector, said delaying the National Retail Trade Policy may slow the momentum of employment growth in the retail sector. 'The policy was expected to support small traders, shopkeepers, improve access to credits, and encourage formal job expansion. Without it, growth in some areas like logistics, warehousing, etc., may take a bit longer," Singh said. 'However, in our view, retail will continue to provide jobs as it does today. This delay may be a missed opportunity but with the right steps taken later, the sector can still grow stronger."
Indian Express
a day ago
- Business
- Indian Express
With ONDC in place, separate national retail policy takes a backseat
As various interventions have been made by the government, such as the Open Network for Digital Commerce (ONDC), which provides open access to retailers, a separate national retail policy may not be a top government priority at the moment, The Indian Express has learned. 'A policy is a set of actions, and those actions are already being taken. Timely interventions are happening on a regular basis, such as the setting up of the National Traders Welfare Board and the launch of the ONDC platform. There is no need for a separate policy for retail trade right now,' a source tracking the matter told The Indian Express. The Ministry of Commerce and Industry told Parliament in 2023 that a draft National Retail Trade Policy had been prepared, based on consultations with state governments and major industry and trade associations. The draft focused on preparing strategies for the overall development of retail trade through targeted efforts to promote ease of doing business in the retail sector. The policy was expected to introduce several measures to reduce the compliance burden, enhance ease of access to credit, and decriminalise minor offences for all formats of retail trade. 'Special emphasis is placed on assessing the requirement of licences, removing renewal requirements, inspection reforms, facilitating public service delivery, and the creation of a single-window facilitation mechanism,' a parliamentary response said. India's retail sector contributes nearly 12 per cent to the gross value added (GVA) to overall GDP, making retail the country's third-largest sector. Experts have said that India currently lacks a single cohesive policy governing all retail formats, which creates 'pockets of imbalance between retail formats' and hampers the sector's growth. While some states like Maharashtra, Andhra Pradesh, and Karnataka have introduced their own policies, a comprehensive national approach is missing, leaving other states governed by 'outdated and unclear regulations'. An overarching policy is considered one of the most 'significant and urgent challenges', according to a CII report in 2018, prior to the development of the draft retail policy in 2021. 'A national policy can encourage the modernisation of in-store operations and standardise back-end infrastructure development by providing financial assistance, subsidies, and tax breaks, and improving access to capital. This modernisation process is expected to lead to more cost-efficient supply chains, improved labour productivity, and savings for end customers,' the report said. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
Time of India
a day ago
- Business
- Time of India
Retail trade policy unlikely; targeted intervention focus
New Delhi: The government is unlikely to come up with a National Retail Trade Policy and instead is expected to work on policy interventions to support retail trade. The Department for Promotion of Industry and Internal Trade (DPIIT) was developing the policy aimed at simplifying the licensing process and reducing the compliance burden in internal trade. Officials said interventions such as National Traders' Welfare Board , Open Network for Digital Commerce (ONDC) and upcoming Sahkar Taxi app would be the way ahead instead of an overarching policy. Explore courses from Top Institutes in Please select course: Select a Course Category CXO Data Analytics Product Management Design Thinking Data Science Leadership MBA Healthcare MCA Degree Others Management Digital Marketing others Project Management Data Science Finance Artificial Intelligence healthcare Cybersecurity Operations Management Public Policy Technology PGDM Skills you'll gain: Technology Strategy & Innovation Emerging Technologies & Digital Transformation Leadership in Technology Management Cybersecurity & Risk Management Duration: 24 Weeks Indian School of Business ISB Chief Technology Officer Starts on Jun 28, 2024 Get Details Skills you'll gain: Operations Strategy for Business Excellence Organizational Transformation Corporate Communication & Crisis Management Capstone Project Presentation Duration: 11 Months IIM Lucknow Chief Operations Officer Programme Starts on Jun 30, 2024 Get Details Skills you'll gain: Customer-Centricity & Brand Strategy Product Marketing, Distribution, & Analytics Digital Strategies & Innovation Skills Leadership Insights & AI Integration Expertise Duration: 10 Months IIM Kozhikode IIMK Chief Marketing and Growth Officer Starts on Apr 7, 2024 Get Details Skills you'll gain: Digital Strategy Development Expertise Emerging Technologies & Digital Trends Data-driven Decision Making Leadership in the Digital Age Duration: 40 Weeks Indian School of Business ISB Chief Digital Officer Starts on Jun 30, 2024 Get Details "A policy is a bunch of interventions and in retail, a National Traders' Welfare Board is there and interventions like ONDC have supported local businesses, especially ride-hailing services," said an official. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo The draft National Retail Trade Policy had proposed a pension and accident insurance scheme for traders, a national common framework for development of the retail sector, easy and quick access to affordable credit, pan-India acceptance of licences issued by states, a centralised computerised inspection management system, deemed approvals and a single window clearance mechanism for making the process of acquiring all registrations, licences and clearances from multiple agencies seamless for retail traders. The National Traders' Welfare Board suggests simplifications in the Acts and Rules applicable to traders, lowering compliance burden. Live Events
Economic Times
6 days ago
- Business
- Economic Times
Kotak Mutual Fund announces ONDC integration in collaboration with Cybrilla
Synopsis Kotak Mutual Fund has joined the Open Network for Digital Commerce (ONDC) in partnership with fintech firm Cybrilla to make mutual fund investments more accessible, especially in Tier 2 and Tier 3 cities. The integration aims to lower distribution costs, boost transparency, and expand investor reach through ONDC's decentralised infrastructure, reinforcing Kotak's commitment to financial inclusion and digital innovation. Kotak Mutual Fund collaborates with ONDC and Cybrilla. This integration will simplify mutual fund investments. Kotak Mutual Fund has announced its integration with the Open Network for Digital Commerce (ONDC), in collaboration with Cybrilla, a leading financial technology solutions integration aims to transform mutual fund investments by making the process more accessible and inclusive, helping Kotak Mutual Fund reach a broader and more diverse audience through ONDC's decentralised digital initiative is designed to simplify the investment experience for millions of Indians—particularly in Tier 2 and Tier 3 cities—by enabling seamless access to mutual fund schemes across multiple ONDC-enabled platforms. 'Joining ONDC Network is a transformative step towards democratising investments. At Kotak Mutual Fund, we believe that every Indian—regardless of geography or income level—should have the opportunity to participate in India's growth story through mutual funds. ONDC Network's open architecture empowers us to reach new audiences, reduce costs, and foster a culture of financial inclusion,' said Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company. Also Read | Who is Madhu Lunawat? The first Indian woman to launch a mutual fund business With this integration, Kotak Mutual Fund reinforces its commitment to leveraging technology to encourage investing habits. As ONDC—an initiative by DPIIT, Ministry of Commerce and Industry—continues to evolve into a powerful enabler of digital commerce and financial services, Kotak Mutual Fund's presence on the Network will help bridge the gap between aspiration and access, bringing mutual fund investments within reach of every investor—regardless of physical location—and starting a new chapter in inclusive investing. The integration is expected to reduce distribution costs, enhance transparency, and empower investors with greater choice and convenience. It reflects Kotak Mutual Fund's focus on financial inclusion and its mission to simplify participation in India's economic growth through informed and accessible investing. Also Read | Who is Madhu Lunawat? The first Indian woman to launch a mutual fund business 'This integration marks a shift from limited, centralised distribution to more open and embedded access. By joining the Network, Kotak Mutual Fund shows how established players can adapt to newer models of discovery that meet users where they already are and make investing a more natural part of their digital lives. It's a small step that quietly expands what participation in formal finance can look like,'"By enabling Kotak Mutual Fund's onboarding on ONDC Network, we're helping create a level playing field where access to financial products is no longer limited by geography, distribution layers, or legacy systems. This integration reflects our vision of building scalable financial rails that simplify participation in India's growth story, empowering every investor with greater choice and transparency," said Anchal Jajodia, Co-founder, Cybrilla.
Time of India
6 days ago
- Business
- Time of India
Kotak Mutual Fund announces ONDC integration in collaboration with Cybrilla
Kotak Mutual Fund has announced its integration with the Open Network for Digital Commerce ( ONDC ), in collaboration with Cybrilla , a leading financial technology solutions provider. This integration aims to transform mutual fund investments by making the process more accessible and inclusive, helping Kotak Mutual Fund reach a broader and more diverse audience through ONDC's decentralised digital infrastructure. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Management PGDM healthcare Artificial Intelligence Operations Management Degree MBA Design Thinking Data Science Others Technology Data Science MCA Finance Cybersecurity Healthcare Project Management CXO Product Management Leadership Public Policy Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details The initiative is designed to simplify the investment experience for millions of Indians—particularly in Tier 2 and Tier 3 cities—by enabling seamless access to mutual fund schemes across multiple ONDC-enabled platforms. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » 'Joining ONDC Network is a transformative step towards democratising investments. At Kotak Mutual Fund, we believe that every Indian—regardless of geography or income level—should have the opportunity to participate in India's growth story through mutual funds . ONDC Network's open architecture empowers us to reach new audiences, reduce costs, and foster a culture of financial inclusion ,' said Nilesh Shah , Managing Director, Kotak Mahindra Asset Management Company. Also Read | Who is Madhu Lunawat? The first Indian woman to launch a mutual fund business Live Events With this integration, Kotak Mutual Fund reinforces its commitment to leveraging technology to encourage investing habits. As ONDC—an initiative by DPIIT , Ministry of Commerce and Industry—continues to evolve into a powerful enabler of digital commerce and financial services, Kotak Mutual Fund's presence on the Network will help bridge the gap between aspiration and access, bringing mutual fund investments within reach of every investor—regardless of physical location—and starting a new chapter in inclusive investing. The integration is expected to reduce distribution costs, enhance transparency, and empower investors with greater choice and convenience. It reflects Kotak Mutual Fund's focus on financial inclusion and its mission to simplify participation in India's economic growth through informed and accessible investing. Also Read | Who is Madhu Lunawat? The first Indian woman to launch a mutual fund business 'This integration marks a shift from limited, centralised distribution to more open and embedded access. By joining the Network, Kotak Mutual Fund shows how established players can adapt to newer models of discovery that meet users where they already are and make investing a more natural part of their digital lives. It's a small step that quietly expands what participation in formal finance can look like,' said Vibhor Jain, Acting CEO and COO at ONDC. "By enabling Kotak Mutual Fund's onboarding on ONDC Network, we're helping create a level playing field where access to financial products is no longer limited by geography, distribution layers, or legacy systems. This integration reflects our vision of building scalable financial rails that simplify participation in India's growth story, empowering every investor with greater choice and transparency," said Anchal Jajodia, Co-founder, Cybrilla.
