E-commerce to benefit from mindful provisions

Union Budget 2020, presented by Finance Minister Nirmala Sitharaman, comes at a time when India has set its sights on becoming a $5 trillion economy by 2025. The Budget is designed keeping in mind the aspirations of young and entrepreneurial India. A wellcalibrated, comprehensive agriculture policy, boosting manufacturing output coupled with measures to increase disposable income are all excellent for a consumer economy.

Several of the initiatives announced today will benefit the e-commerce sector in particular. This is led by the increase in income by way of the new tax regime that promises to foster a vibrant consumer economy. The tax deferment of ESOPS, which plays a significant role in attracting and retaining talent, is a welcome move for the start-up sector.

The thrust on digital infrastructure will be key to bridging the socio-economic and the rural-urban divide. The impetus to create opportunities for the digital economy is a step forward towards a transparent and cashless economy. Be it the policy for data centre parks throughout the country or the plan to digitally connect all public institutions at gram panchayat levels such as police stations and post offices; these are steps that will accelerate the digital ecosystem in various aspects.

As per industry estimates, the country’s retail market is expected to cross $1 trillion in the next few years. At the same time, e-commerce, which is small currently, too, is likely to grow to $200 billion by 2026. In such a scenario, the robust policies announced today for infrastructure will not only fortify the logistics sector that forms the backbone of our economy but also help realise the vision of creating Smart Cities nationwide.

The National Logistics Policy will help create a single window e-logistics market to clarify the role of the Centre, states and also key regulators and will further streamline the operations in the sector. MSMES are the real growth engine for the economy and significant provisions have been announced for their benefit including extended debt restructuring window, invoice financing by massive investment in education, skilling and encouraging manufacturing of mobile phones, semiconductor packaging and electronic equipment is in sync with the broader vision of Make In India.

KALYAN KRISHNAMURTHY