As the Union Budget 2026 approaches, India’s trading community is voicing strong expectations for reforms that can make business operations easier, more transparent, and more competitive. In this context, the Confederation of All India Traders (CAIT) has submitted a detailed set of proposals to Finance Minister Nirmala Sitharaman, outlining key demands aimed at strengthening the trading ecosystem and supporting the government’s Atmanirbhar Bharat (Self-Reliant India) vision.

CAIT believes that Budget 2026 should focus on empowering small and medium traders, reducing bureaucratic hurdles, promoting digital transformation, and ensuring fair competition across retail and e-commerce platforms.

Strengthening Ease of Doing Business for Traders

CAIT National Secretary General and Chandni Chowk MP Praveen Khandelwal highlighted that the government’s past initiatives — such as Ease of Doing Business, Digital India, Make in India, Vocal for Local, and Local for Global — have already improved the trading environment.

However, he emphasized that Budget 2026 must further strengthen these efforts, particularly to ensure that small and medium traders benefit equally from economic growth and modernization.

The organization stressed the need for a trust-based trading system, which would reduce unnecessary regulatory pressure and foster a healthier relationship between traders and authorities.

Key Demand: Trust-Based Trading and Compliance Reform

One of CAIT’s most significant proposals is the introduction of a trust-based trading framework. Under this model, the organization has called for:

• A single-window compliance system for small traders

• An end to unnecessary legal notices and repeated inspections

• Decriminalization of minor trade-related legal provisions

• Reduced regulatory harassment to encourage honest business practices

Additionally, CAIT has suggested forming joint committees of government officials and traders at the district level, enabling faster and more effective resolution of local business issues.

One Nation–One License–One Registration System

To simplify business licensing, CAIT has proposed implementing a “One Nation–One License–One Registration” policy.

Key Features of the Proposal:

• All trade licenses issued through a single digital platform

• Unified national registration instead of state-wise approvals

• Automatic license renewal to eliminate repetitive paperwork

• Reduced dependency on physical office visits

According to CAIT, this reform could dramatically reduce red tape, lower compliance costs, and allow traders to focus more on business growth rather than administrative tasks.

Boosting Digital Adoption Among Traditional Traders

To accelerate Digital India goals, CAIT has recommended multiple initiatives aimed at helping traditional traders adopt technology.

Suggested Measures Include:

• A Technology Adoption Incentive Scheme for offline retailers

• Subsidies on digital tools, POS systems, and e-commerce infrastructure

• Tax benefits for digital upgrades

• Launch of a “Digital Shop Mission” to modernize small retail stores

These steps would help small shopkeepers integrate with the digital economy, enhance customer experience, and remain competitive in an increasingly tech-driven marketplace.

Concerns Over E-Commerce and Quick Commerce

CAIT has raised concerns about the impact of e-commerce and quick commerce platforms on small retail businesses.

The organization argues that:

• Heavy discounting and predatory pricing are harming local traders

• Foreign-funded platforms are creating unfair competition

• Small offline retailers are being pushed out due to unequal regulations

To address this, CAIT has urged the government to:

• Implement uniform rules for both online and offline retailers

• Enforce strict regulatory oversight on e-commerce pricing practices

• Introduce a Fair Trade Code to ensure a level playing field

Tax Relief and Financial Support for Honest Traders

CAIT has also proposed multiple tax and financial reforms to reward compliant and honest taxpayers.

Key Recommendations:

• Introduction of a Taxpayer Rating System

• Reduced scrutiny and fewer audits for compliant traders

• Faster GST and income tax refunds

• Affordable and accessible business loans

• Simplified tax compliance for small traders

These measures aim to improve cash flow, reduce financial stress, and encourage traders to remain within the formal economy.

Skill Development and Social Security for Traders

Recognizing the need for workforce upskilling, CAIT has proposed a National Traders Skill Development Program.

Focus Areas:

• Digital skills

• Accounting and financial management

• Cybersecurity awareness

• Business technology training

The organization has also called for:

• Stronger pension schemes for small traders

• Improved insurance coverage for traders and their employees

• A special cyber fraud protection fund

• A dedicated trade finance policy for MSMEs to ease access to working capital

Why These Budget Demands Matter

If the government incorporates CAIT’s recommendations into Budget 2026, it could lead to:

• Simpler business licensing and compliance

• Better financial security for small traders

• Greater digital inclusion in traditional retail

• Fairer competition between online and offline markets

• Increased trust between traders and regulators

• Stronger contribution of MSMEs to India’s economy

Outlook for Budget 2026: Hope for a Trader-Friendly Budget

The trading community is optimistic that Union Budget 2026 will introduce reforms that simplify trade, reduce compliance burdens, support digital growth, and protect small retailers from unfair competition.

By adopting policies like One Nation–One License–One Registration, enhancing digital incentives, and improving financial and social security for traders, the government could take a major step toward building a resilient, modern, and trader-friendly economy.