Rajan Malhotra, President-Retail Strategy, Future Group, is looking forward to consumer sentiment improving. He hopes this will lead to more consumption in the retail sector. For the Future Group, FDI in retail is not going to be of much significance, as the country’s leading retailer is now looking forward to raising money by other means to pare debt and selling stakes across its prior investments, and also exiting non-core areas. Excerpts from an interview on his views on the Budget:

What are you looking forward to from the Budget?

We are looking at positive growth indicators for the economy. Unless the economy is healthy it will not augur well for the retail sector, so growth is imperative from the supply side.

Does FDI in retail have any significance today for the retail sector as the flip in policy has already taken its toll?

FDI in retail is going to be of no consequence as there are other areas of concern for the government. In 2005 when growth was at 10 per cent we were adding 200 to 300 million customers; so for the retailers, the economy has to grow as far as retailers are concerned.

What is the current state of the retail sector? Was there anything special for retailers in the previous Budget?

There was nothing significant in the previous Budget. Retail is growing at 20-25 per cent across categories, and after ten years, the industry has become wise and there is no reckless expansion. But the government, through the Budget, has to create a psychological impact on consumers and bring about ache din ayenge .

Any suggestions on the tax and duty regime which the government should address which would impact retailers in the Budget?

The old taxation laws have to be removed. According to the old laws even categories such as talcum power and perfumes were considered luxury and hence taxed. Some other categories such as footwear continue to be heavily taxed at almost 35 per cent and must be rationalised.

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