Internal Trade Current Affairs

Union Government to adopt three-pronged approach to spur internal trade

The Union Government may soon consider adopting a three-pronged approach to revitalise domestic retail and wholesale trade.

The three-pronged approach includes (i) Establishing a regulatory body for national internal trade (retail and wholesale) (ii) Comprehensive domestic trade policy and (ii) Board for Internal Trade.

Need for new approach

  • Domestic trade mainly comprises non-corporate small businesses providing employment to an estimated 460 million people.
  • Currently, there is no single regulatory body or Ministry for such six crore small businesses in the country that have collective annual turnover of around Rs. 30 lakh crore.
  • The current approach policy regime and the environment is considered only conducive for foreign retail giants and their Indian partners or counterparts

Implications

  • The proposed three-pronged policy approach will address need of these small businesses with an aim to generate employment, improve financial inclusion of small traders.
  • It will also ensure ease of doing business by eliminating multiplicity of approvals, improve competiveness of economy and boost overall demand to boost growth.
  • Besides, the new strategy will also help to link Central Government’s flagship initiatives such as Digital India, Skill India and Make In India with these small businesses.

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