Union Budget 2026: CAIT Pushes For Big Reforms For India’s 9 Crore Traders, Digital Dukaan, Fair Trade And Security

The Confederation of All India Traders (CAIT), representing over 9 crore traders and small business entrepreneurs, has submitted a detailed set of budgetary recommendations to Union Finance Minister Nirmala Sitharaman ahead of the upcoming Union Budget. In a letter, CAIT outlined a roadmap of reforms aimed at digitising, securing and empowering India’s vast trading community.

Praveen Khandelwal, Member of Parliament and Secretary General of CAIT, underlined that the trading community “has always been the backbone of India’s economy and a strong pillar of employment generation.” The proposals focus on moving toward a trust-based business ecosystem by simplifying compliance and reducing regulatory burdens on small traders.

Push For Simplified Compliance And Digital Transition

A key recommendation is the introduction of a single-window compliance system for small traders, along with fast-tracking the decriminalisation of business laws. CAIT also called for curbing unnecessary notices and inspections to promote transparency and ease of doing business.

Khandelwal proposed that all trade-related licences be issued through a unified digital platform with auto-renewal provisions under a “One Nation–One Licence–One Registration” framework. To accelerate digitisation at the grassroots level, CAIT suggested launching a “Digital Dukaan Mission” to modernise traditional retail, supported by a Technology Adoption Incentive Scheme and subsidies for digital tools and software.

Ensuring Fair Competition In E-commerce And Trade Practices

Addressing concerns around market equity, CAIT urged mandatory registration of all e-commerce and quick-commerce companies with the Ministry of Commerce. The letter called for “immediate checks on heavy discounting, predatory pricing and unfair practices by foreign-funded platforms” to safeguard small retailers.

The representation also advocated the creation and strict enforcement of a Fair Trade Code across all sectors to ensure a level playing field for traders and prevent market distortions.

Data Security, Social Protection And MSME Support

CAIT proposed the establishment of a National Traders Data Bank, a Trade Ombudsman for faster dispute resolution, and a dedicated Trade Finance Policy for MSMEs. On social security, the body recommended strengthening pension and insurance coverage for small traders and making existing schemes more practical and inclusive.

Further, Khandelwal highlighted the need for a Taxpayer Rating System and reduced scrutiny for compliant taxpayers to encourage honest reporting. The proposals concluded with a call for a Cyber Fraud Protection Fund and stricter data protection laws to prevent misuse of traders’ data by banks and digital platforms.

Emphasising the broader economic impact, Khandelwal noted that “if traders are empowered with dignity, security, simplicity and equal opportunities,” India’s journey toward a USD 5 trillion economy and the vision of Viksit Bharat @2047 will accelerate.

(This article has been syndicated from ANI)