Retail is one of the most important industries in the State, which features well-known retail districts in Chennai and Coimbatore. Maharashtra, Andhra Pradesh, Karnataka, and Haryana currently have retail policies, and some offer skilling support for the sector. The Retailers Association of India has urged the Tamil Nadu government to develop a new retail-specific strategy.
Kumar Rajagopalan, CEO of the Retailers Association of India, has opined that Tamil Nadu has been a leader in developing chain stores over the past five decades. However, retail policies have only sometimes focused on consumption, despite the impact of Acts and policies such as the Shop and Establishment Act, Labour Act, and Weights and Measurement Act on the sector. Therefore, state governments should prioritise the retail sector to enable growth, which is important for employment, consumption, and tax revenue.
Simplifying Licensing Processes For Retailers
According to Rajagopalan, any retail policy should prioritise ease of doing business and development facilitation. Currently, retailers require numerous licenses depending on the goods or services they sell, which could range from 20 to 50. To address this, online automatic license processing should be implemented to simplify the process. Additionally, work hours should be flexible based on consumer preference.
Data from Jones Lang LaSalle indicates that prominent brands such as Reliance-Trends, Aditya Birla, Tata, and Landmark have established themselves in Tamil Nadu, and homegrown retailers like Pothys and Saravana Stores have opened new stores and plan to open more in suburban locations. Furthermore, jewellery brands have also opened new branches in peripheral catchment areas. There are at least 11 grade-A malls in Chennai and possibly four grade-B malls, with five or six grade-A malls operating in Coimbatore and Madurai.
Future Vision For Retail Space
The retail sector in India is projected to reach USD 1.2 trillion by 2030, accounting for 10% of India’s GDP and 8% of employment. India is the world’s fifth-largest destination for retail space. If properly channeled, the retail sector could attract investments during the Tamil Nadu Global Investors Meet 2024, according to retailers interviewed by The Hindu.
Jerry Kingsley, head of strategic consulting and valuation advisory India & city lead capital markets – Chennai, Jones Lang LaSalle, emphasised the need for a cohesive retail policy focusing on ease of doing business, fundraising, and technology-centric newer models for sustained growth. He suggested a proactive approach by the Tamil Nadu Government to allow changes in the land zoning of assigned/government land to accommodate retail.
The future for businesses in Tamil Nadu is bright indeed! If you wish to leverage the numerous economic opportunities in the State, contact the experts at Vakilsearch and get yourself a Shop and Establishment License Right Away!
Also Read:Challenges In Indian Hotel Acquisitions: Hurdles Faced In Expansion
https://thelogicalindian.com/h-upload/2023/03/27/500x300_230817-web-14.webp
Trending
2023-03-27 08:47:17.0
For Retail Sector In Tamil Nadu To Grow, Experts Call For Sector-Specific Policy
