The pioneer of retail boom in India, B.S. Nagesh, feels that GST regime will bring in more benefits than harm in the long-run. Former Shoppers Stop MD and CEO, is now shuffling his time between his NGO – Trust for Retailers and Retail Associates of India (TRRAIN) and RAI (Retailers Association of India).
Tell us your view on GST bill?
GST is an inevitable truth. Being in a democratic country, the draft has to go through both the houses. Thus, there is a delay. However, I believe that the government is going to pull it through. GST will get a go ahead and start getting implemented by 1 April. In my opinion, it is a beneficial legislation for the retail business. However, there would be some verticals or product categories like apparels, could suffer. It will impact consumers and retailers to some extent.
I am happy with the current rules and laws that are put on the public form. The government is looking to make this happen for brick and mortar; and online players together. It looks sensible, favourable and beneficial on a long-run.
Talking about the impact in the industry, what are the trends that the industry will see there?
From government’s side, the challenges will include implementation and monitoring. From retailer’s side, large retailers are getting ready for the bill as they have consultants to do the work. However, I believe that medium retailers are not prepared. In terms of smaller retailers, I do not even think that they are worried about it.
We will have to see how the government, technology companies and industries come together to up the levels.
The Government has launched many initiatives like ‘Make in India’ and ‘Digital India’; do you think there is any more initiatives needed targeting retail industry?
There should not be any more initiatives. The initiatives coming forward should be consolidated. Government is very different from a private enterprise. The government has limited resources.
Is online business a threat or an opportunity for offline business?
There is no way that brick and mortar model will die. It will just start serving the consumer in a very different way.
There is a tremendous opportunity. The small companies will grow 3-4 times. With respect to large companies, few of them will survive and do good businesses. There will be a huge challenge faced by mid-level companies who will not be ready to change their mind-set.
Do you see huge FDI inflow coming into the country?
Lot of FDI will come into the country. Unfortunately, the government has not been very partisan in their thinking. They have not sorted out the policies. The big players are getting their way. If Apple gets it way, and special policy is done for IKEA, then why not a special policy for Indian retailer. On behalf of RAI, we have been talking to the government to allow the level playing field. If this change is done, then will be an unimaginable inflow of FDI.
What is TRRAIN upto?
As a trust, we are looking at the betterment of retail employees and small retailers. We have our own programs that are based on skill for able and disabled. Today, we have 26 centres in the country and hopefully, in the next five years it would 100 centres. Last time, we worked with 1,200 youth and this year, we are targeting 2,000 – 2,500 youth.
Last year, abled education upskilling program had doubled. Hopefully, after two-three years when we have enough resources, we will look at ways on how we can impact retail communities.
How much funding has TRRAIN received so far?
For first five years, I funded it through my own savings. In the last one and half year, lot of companies have come forward. This year, we plan to train 2,500 youth which means we will require somewhere around Rs. 3.5 crore. We already have 50% covered up from some corporates. The challenges is not funding but getting the youth employed and sensitising retailers and parents of the disabled youth.
(As told to Jescilia Karayamparambil)
