The capital-intensive organised retail business, which has already seen a large chain like Subhiksha

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going bankrupt and biggies like Vishal Retail, More and Reliance Retail reeling under losses, is hoping that the Union government will provide them with access to foreign equity in the forthcoming Union Budget.

Industry leaders also hold that any effort to boost household consumption will directly help the retail sector's fortunes. Said B S Nagesh, vice-chairman, Shopper's Stop, who also doubles up as chairman of the Retailers Association of India (RAI), "Foreign institutional investment and venture capital fund inflow should be made available for the sector. Also, retail as a sector should get industry status, so that it gets on the radar of the banking industry. Then we can have easier access to funds."

RAI is in the process of sending its proposals to the Union government. Kishore Biyani, CEO, Future Group, feels that the introduction of integrated goods and services tax should make a lot of difference to the sector.

"Abolition of different subsets of taxes, especially service tax, will help the industry a lot. The government should understand that the retail industry drives consumption, which in turn will improve the economy. So retail should get industry status," he said.

"The growth potential of mobile and IT products is tremendous. The government should see that mobile handsets don't attract higher rate of sales tax. Also, some push is needed push is needed from the government to recognise the retail sector as an industry so that investments can happen for its future growth," Rajiv Agarwal, CEO and director, The Mobile Store, said. Industry experts feel that any steps the government takes to boost disposable incomes in the hands of households or moderate the high rate of food price inflation which has been affecting consumer budgets would positively impact demand for items such as consumer durables.

Said Harish Bhatt, CEO, Titan Industries, "The government should stimulate growth in the economy, which in turn will stimulate consumption. It should also retain the stimulus packages until there is a complete rebound in the economy."

Ajit Joshi, CEO of electronic retail chain Croma, said, "Increase in taxes on durables like refrigerators and washing machines makes a lot of impact. We need a change in our mindset. The way food inflation is going up, a refrigerator should be seen as an essential item rather that a luxury one. This is because refrigerators help in storing food and prevent wastage."