Budget forecast: e-commerce sector

“The e-commerce industry in India has managed to witness substantial growth owing to a rapid increase in internet user penetration and increased demand for easy access to goods and services among consumers of all The possibilities are endless when it comes to With regard to the increase in online shopping and payment gateways, the e-commerce sector should look to give impetus to digitization and encourage transactions digital technologies in the next EU budget.

I also hope that the government will reduce the corporate tax rate at all levels to stimulate growth. To amplify the Make in India initiative, the time has come for the government to incentivize product companies by introducing incentives that help them become globally competitive and take product innovation to the next level. .

Over the past year, the retail sector has shown several signs of recovery and is aiming for a full recovery on all indicators, due to growing consumer demand. Experts believe that the increase in purchasing power has led to a growing demand. the government should take measures, bring measures or programs for the sector that could have an additional impact on the growth of consumption, or at least not let consumption fall.

The Union budget is expected to cover some benefits for startups, such as tax reductions for companies with turnover below INR 10 Crores, and full tax exemption for 3 years and on the profits made in the first 5 years, the budget should be for the benefit of the overall startup ecosystem. From there, I expect better tax benefits for startups and SMEs that can still contribute to growth.

The long-awaited national logistics policy (India ranked 44 with a score of 3.18 in the World Bank’s Logistics Performance Index Global Ranking 2018) with a multimodal and technological 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 make 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, Vice President and Chief Business Officer, TeamLease Services

The views and opinions expressed are not those of IIFL Securities, indiainfoline.com