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- The Government is considering to bring a national policy on retail trade.
- This policy is being brought as e-commerce firms are looking to expand into new segments such as groceries alongside penetrate into India’s geography.This will widen the conflict between online retailers and traditional ones.
- The retail policy is expected to cover different segments and could offer a level playing field to all players in the ecosystem while helping the smaller retailers modernise to meet the growing demand.
- The policy is also expected to lay down an overarching framework for the sector to cover various segments such as physical retail,direct selling, hypermarkets and e-commerce.
- The policy will focus on spelling out regulations, improving access to funds and compliance costs while improving the enabling environment for the retail sector as a whole.
- Further,the e-commerce firms and traditional retail traders have been at loggerheads with the latter accusing online retailers of distorting the level-playing field by offering deep discounts on back of foreign funding.
- However, e-commerce players have pointed out that currently online retail occupies less than 5% of the total retail pie in India.
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