India shifts retail strategy: Emphasis on ONDC, welfare board over new policy

Government sources have indicated that India is unlikely to come up with a separate National Retail Trade Policy and policy interventions in the existing schemes will be preferred for retail trade instead of a new, overarching policy.

Sources added that the government will engage in policy interventions to strengthen the National Traders’ Welfare Board and the Open Network for Digital Commerce (ONDC) to support retail trade within the country.

India is the fifth-largest global destination in the retail space. In 2023, the Commerce and Industry Ministry and the Department of Financial Services were also working on framing an insurance scheme for all the GST-registered retail traders. As per a BCG-RAI report, India’s retail industry is likely to witness 10% annual growth to reach about $2 trillion by 2032.
In December 2022, the Department for Promotion of Industry and Internal Trade (DPIIT) had sought views from 16 departments and ministries on its draft national retail trade policy aimed at an overall development of all the aspects of the sector.

The policy aimed at including easy and quick access to affordable credit; modernisation and digitisation of retail trade by promoting modern technology; development of physical infrastructure across the distribution chain; promotion of skill development; improvement in labour productivity; and an effective consultative and grievance redressal mechanism for the sector.