Budget 2012: Clarity needed on FDI in retail, says Vijay Bobba, CEO, Payback India

NEW DELHI: The forthcoming Union Budget should provide clarity on FDI in retail as the crucial reform will be beneficial to all stakeholders, including consumers, said Vijay Bobba, CEO, Payback India.

"FDI in retail needs more clarity as it is a crucial reform. It will offer more choices to the consumers, benefit farmers and every stakeholder in general as it will bring in much needed efficiencies in supply chain and bring down prices across the board. Further, it will be a much needed impetus to grow the organized retail sector, which at present is badly in need of fund infusion," Bobba said.

For retail to expand in India, mergers and acquisitions within the retail sector will need to become more smooth and mutually beneficial with amendments in taxation policies, he said.

"Also, the government should consider a uniform legislation allowing shops to operate 365 days and for extended hours,” Bobba said.

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He added that the Indian economy has stagnated due to slowing global economy and policy paralysis.

"We expect this year’s Union Budget to highlight policy transparency, technology investments to bring about efficiencies in public expenditure and provide tax advantages (e.g. higher capital asset depreciation benefit) for companies investing in capex and innovation," he added.