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Published
Oct 13, 2020
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Retailers Association of India praises government package to boost festive demand

Published
Oct 13, 2020

The Retailers Association of India praised the government’s new ‘leave travel concession’ cash voucher scheme on Monday, expecting it to boost the retail economy in sectors including fashion. 

The government has introduced a scheme for public sector workers to boost festive spending and aid the retail sector

 
The government’s new scheme will give cash vouchers to public sector employees with a Rs 10,000 ($136.30) festival advance on their salary. It is designed to boost consumer spending to help the economy to recover from effects of the ongoing coronavirus pandemic. 
 
The RAI said in a statement praising the move that the scheme will encourage spending in categories which attract goods and services tax of 12% and up including apparel, beauty, and personal care products among others. The traders’ body also shared that it hopes the scheme will also be introduced for workers in the private sector.

“The Indian retail industry has pinned their hopes on festive shopping to recover from the immense loss of business caused due to the pandemic,” said the RAI’s CEO, Kumar Rajagopalan.

“The retail fraternity welcomes the announcement by the Union Finance Minister on the schemes for government employees as a stimulus to boost demand in the economy.”
 
As part of the LTC Cash Voucher Scheme, the government will give its employees income-tax-exempt cash vouchers in lieu of their entitled travel allowances this year as travel restrictions are still in place.

Union Finance Minister Nirmala Sitharaman said that the scheme is expected to create consumer demand worth Rs 28,000 crore.

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