Budget expectation: e-commerce sector

21 Jan 2022 , 04:45 PM

“The e-commerce industry in India has managed to gain substantial growth owing to a rapid increase in internet user penetration, and greater demand for easy access to goods & services among consumers from all walks of life. The possibilities are endless when it comes to e-commerce. Looking at the increase in online shopping and payment gateways. The e-commerce sector should be looking for an impetus to the digitisation and incentivising digital transactions in the upcoming Union Budget.

I also hope that the government cuts the corporate tax rate across the board to spur growth. To amplify the Make in India initiative now is the time for the government to encourage product companies by introducing incentives that help them become globally competitive and take product innovation to the next level.

In the last year, the retail sector has shown several signs of recovery and is aiming for a complete revival on all metrics, this is driven by the rising demand from consumers. Experts believe that the increasing purchasing power has led to growing demand. the government ought to take actions, bring measures or programs for the sector that may further impact the growth in the consumption, or at least not let the consumption go down.

The Union Budget should cover certain benefits for startups, such as reduced taxes for companies with a turnover less than INR 10 Crores, and complete exemption from taxes for a duration of 3 years and on profits earned during the first 5 years, the budget should be benefitting the overall startup ecosystem. Going by this fact, I am expecting better tax benefits for startups and SMEs that can further aid the growth.

The much-awaited National Logistics Policy (India ranked 44 with a score of 3.18 in World Bank’s Logistics Performance Index Global Rankings 2018) with a multimodal and tech-enabled approach as the logistics ecosystem is linked to $215 billion and is expected to grow with a CAGR of 10.5% by 2025. The proposed NLP must have room for PPP models for faster optimization of logistics and warehousing networks and the government must preserve the autonomy and independence of the private sector.”

The author of this article is Ajoy Thomas, VP & Business Head, TeamLease Services

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com