In a major policy directive aimed at boosting grassroots commerce, the Ministry of Housing and Urban Affairs has instructed local bodies and municipal administrations across India to extend targeted support to sole retail enterprises. The order, which follows growing recognition of the role of sole proprietors in sustaining urban and semi-urban economies, directs municipal corporations, town panchayats, and district administrations to simplify regulatory processes, offer infrastructure support, and ensure access to local economic development programs for single-owner retail businesses.

As part of the directive, local bodies have been asked to establish dedicated support desks within urban planning departments to assist sole proprietors with licensing, signage approvals, tax registrations, and utility connections. In addition, they are encouraged to provide access to vending zones, night markets, and shared retail spaces under various urban employment and smart city missions. This move is expected to significantly benefit small shopkeepers, corner store owners, hawkers, and other self-run retail outlets who often face administrative bottlenecks and lack formal recognition despite contributing significantly to local employment and commerce.

Officials have emphasized that empowering sole retail enterprises is crucial not only for economic recovery post-pandemic but also for ensuring inclusive urban development. The directive also urges local authorities to integrate these retailers into digital commerce ecosystems by providing training and access to municipal e-marketplace platforms. Data on registered sole retail businesses will be compiled and linked to the Udyam database to ensure these enterprises are eligible for government schemes, credit programs, and welfare benefits. Business associations and local trader federations have welcomed the move, calling it a long-awaited step toward legitimizing and supporting India’s smallest yet most dynamic business segment at the local level.