The Centre’s National Trade Retail Policy, which has been in the works for some time, is learnt to be in advanced stages of finalisation. It is expected to serve as a model policy providing a framework of guidelines for States. 

Sources said it will focus on ease of doing business, simplifying licensing process, reducing compliance burden as well as enabling women workforce to work for longer hours among others. A national portal is also being envisaged that will allow all licensing related processes to be accessible from one platform to make it less cumbersome and allow retailers to be able to track the licensing process.

A senior industry executive said the policy has been finalised and it remains to be seen when the government decides to notify the same. He added that it will lay down broad contours of a prescriptive framework and States will play a key role in implementation of the policy.

Industry sources added that the guidelines will focus on various aspects including removing impediments for women to work till store-closure time and also giving them flexibility to be able to work part-time.

Licensing process

The retail sector expects the guidelines will streamline the licensing process. Currently, retail stores are required to obtain 25-50 different licenses, many of which must be renewed annually. These licenses are acquired from the Central government, State governments, and local authorities.

Another senior industry executive said that a single view of the licenses is required and that a national portal is being proposed which will allow retailers to access and track licensing and clearance process through one website.

Retail sector is one of the major contributors to India’s GDP and employment generation. Many laws that govern the retail sector in India includes Shops and Establishment Act, Consumer Protection Act, Legal Metrology Act , Food Safety Act and Essential Commodities Act among others. Variations in licensing and clearance processes across States creates immense complexity for retailers especially those that have pan-India or multi-State presence.

Earlier this year, retailers had got some relief with the enactment of the Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised certain offences and streamlined minor offences in various Acts including Legal Metrology Act.

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