To provide a level-playing field to stakeholders, the government believes there has to be a single policy for both offline retail business and e-commerce. NITI Aayog CEO Amitabh Kant said while interacting with CEOs at FICCI’s annual Retail, FMCG and E-Commerce Convention that in today’s globalized world, it has become essential for India to become a part of the global supply chain.
For this, India has opened up its economy and liberalized the FDI regime. Now India features as the number one nation in attracting FDI, which has given the country access to latest technology, global best practices and global innovations, the NITI Aayog CEO said.
Kant said that the government was encouraging domestic entrepreneurs but with foreign players coming in there would be a healthy competition. The domestic market would be challenged by foreign businesses, which would enable indigenous companies to scale up, enhance quality of products and services and penetrate global markets.
Speaking on digitization, Kant said that technology would play a key role for retail sector. With a growing penetration of the internet, which reaches to rural areas of the country, the retailers would be able to deepen their market.
He added that the retailers should also look at widening their base of suppliers and promote and market made in India goods and products. On GST, Kant said that with the passage of GST Bill in Parliament, the challenge would be to bring on board every state of the country. To make GST highly effective, there was a need for states to think progressively and work in tandem with the Centre. He added that the way forward for GST should be keeping the tax rates low and eliminating exemptions.
Kant said that India’s GDP needs to grow at 9-10 percent for decades to meet the rising aspirations of burgeoning consuming class. This, he said, can be achieved only when at least 12 states will grow at a rate of 12-13percent, by actively embracing technology and improving its standard of products.
The Centre has therefore started ‘ease of doing business’ ranking of the states on various indices. He added that the intention is to change the mindset and allow states to compete with each other and improve business and investment environment in the country.