Retail to get a fillip from govt schemes
Live MintFinance minister Nirmala Sitharaman on Monday announced measures that could generate an additional ₹36,000 crore in consumer demand and drive sales of products such as mobile phones, household appliances, furniture and apparel. The LTC cash voucher scheme and the special festival advance scheme for all central government employees, will encourage them to spend on high-value items, stoking demand for such products. The LTC cash voucher scheme allows government employees, who haven’t availed it, to get fare as cash vouchers to be spent by March. An interest-free advance of ₹10,000 per employee in the form of prepaid RuPay card has also been announced to generate a demand infusion of ₹4,000 crore if all central government employees utilize it and an additional ₹4,000 crore if states match the offer and 50% of state government staff use it. The LTC cash voucher scheme will encourage spending on categories that attract a GST of 12% or more such as apparel, computers, consumer durables, smartphones, home appliances, furniture and home furnishings, beauty and personal care.