Union Government to adopt three-pronged approach to spur internal trade

The Union Government may soon consider adopting a three-pronged approach to revitalise domestic retail and wholesale trade.
The three-pronged approach includes (i) Establishing a regulatory body for national internal trade (retail and wholesale) (ii) Comprehensive domestic trade policy and (ii) Board for Internal Trade.
Need for new approach

• Domestic trade mainly comprises non-corporate small businesses providing employment to an estimated 460 million people.
• Currently, there is no single regulatory body or Ministry for such six crore small businesses in the country that have collective annual turnover of around Rs. 30 lakh crore.
• The current approach policy regime and the environment is considered only conducive for foreign retail giants and their Indian partners or counterparts

Implications

• The proposed three-pronged policy approach will address need of these small businesses with an aim to generate employment, improve financial inclusion of small traders.
• It will also ensure ease of doing business by eliminating multiplicity of approvals, improve competiveness of economy and boost overall demand to boost growth.
• Besides, the new strategy will also help to link Central Government’s flagship initiatives such as Digital India, Skill India and Make In India with these small businesses.

Month: Current Affairs - October, 2016