Push on infrastructure, textile to benefit retailers: Experts

NEW DELHI: The push on infrastructure spends across roads, rural, textile parks and agri-sector support will put more money in the hand of consumers and will drive consumption across categories, experts from retail sector said.

“In addition, the infrastructure focus will enable companies to expand their rural and urban coverage, further helping drive consumption across the country, enabling the “One India One Market” vision,” said Rajat Wahi, partner, Deloitte India.

The focus on ‘Make in India’ and increased custom duties, are also expected to result in promoting domestic manufacturing, improving employment rate, experts said.

“Sourcing structures for retailers and FMCG companies dependent on imports may have to be revisited and focus on sourcing India-made products may increase,” Paresh Parekh, partner & national tax leader, retail sector, EY.

Finally, the lack of any increase in Direct taxes (such as Covid or Wealth tax) will further enable spending of increased savings due to Covid, Wahi added.

“A scheme of mega investment textile parks will be launched in addition to the PLI scheme,” Sitharaman said, adding that seven mega textile parks will be launched in three years as part of the scheme.

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