Budget 2015 To Boost E-commerce Industry

by CXOtoday News Desk    Mar 02, 2015

ecommerce

For the e-commerce companies, especially the online startups, the Union Budget 2015-16 have much to offer. With announcements like allocations of  Rs 1000 crores  to technology and startup sectors, promotion of cashless transactions via RUPay debit cards backed by major reduction in Corporate tax from 30% to 25% over next four years, it is evident that the government is focusing on promoting e-commerce, innovation and entrepreneurship.

Many of the online start-up and e-commerce companies believe that the Budget 2015 will be the start of a new era of higher growth in their industry. Here’s what some of the e-commerce leaders had to say.

Tapan Kumar Das, CEO and Co- Founder of  iTiffin.in,(Intelligent Tiffin) an online and offline healthy meal providing company: “The allocation of Rs 1000 crore for  start-ups was one of the major announcements of this year’s budget. It’s definitely a breakthrough move for entrepreneurship in the country but the implementation of the same is a daunting challenge. Reduction of corporate tax by 5% is another step that favours emerging companies immensely. But, according to me, for start-ups, it’s the growth of the company that matters more than just making profits. Looking at the positive side, the saved money can help companies invest in employee training to enhance their productivity.”

Suresh Sharma, Founder & Director , iSpyPrice.com, a leading price comparison website: “The Rs 1000 crore fund that has been allocated for start-ups, will encourage entrepreneurship and generate more employment opportunities in the sector. Also, the promotion of cashless transactions through RUPay debit cards also works for the benefit of internet-based companies as this will reduce the propensity for Cash on Delivery, which is very high at present. Besides this, the tax reduction on royalty fees for technical services from 25% to 10% will make these services more cost-effective and bolster the operations of various tech-based firms.”

Sitakanta Ray, Co-founder & Director, MySmartPrice.com: For e-commerce, while the dream of a tax holiday or FDI hasn’t come true, the introduction of GST in 2015-16 will greatly help the e-retailers who have been struggling with the differentiated tax laws. Overall the budget has focussed on pushing the Make in India strategy by encouraging domestic industries and entrepreneurship and rewarding the Indian industries.”

Ashish Sood , Co- Founder, Youshine, India’s only omni channel fashion jewellery & accessories retail : “It is excellent that the Indian entrepreneurial system is being encouraged by the announcements of a start-up Fund of Funds and the special MUDRA Bank to take of MSME funding needs. Being a very young population, these measure will go a long way promote entrepreneurial activity in India.However, it is disappointing that GST implementation has been put forward by another 12 months. Retailers like us, who are looking to establish a Pan-India presence were really looking forward to this announcement.”

Suvro Ghosh Founder HelpMeDoc.in, a portal which has 360˚ service for all healthcare needs online: “Welcoming FDI is a cornerstone for a turnaround and to create and enhance infrastructure. Making current loans refinanced for MSME segment will let corporates think better and will help them create more jobs. It’s a huge temptation for expansion of the present MSME segment and to think differently. Reduction of corporate tax to 25% from 30%, shows a powerful vision. Social security, healthcare and insurance has been taken into consideration and this is commendable. An attempt to make transactions cashless to stop black money exchanges is a well-thought move. This step will reveal its real value, gradually, in the times to come. Overall, this has been a progressive budget, looking towards a modern India.”

Swaminathan Vedaranyam Chief Executive Officer, of online travel network VIA.com: “The  Finance Ministers’ proposal to  increase Visa on arrival scheme  from the current 43 countries to 150 countries is a very welcome move as it will push the incoming to India dramatically which will in turn help the entire local eco system of India. There is a recent spurt in domestic travel as well as a higher influx of foreign tourists in India and with dedicated upkeep of the tourist hotspots, we can ensure higher growth for the travel industry.  The reduction on the Corporate tax is another major move that will help companies put aside more cash which can be  be ploughed back into the business.”

Shefali Singh Founder of Mysha, an online travel solutions to corporate clients: “Arun Jaitley’s budget included some very positive announcements for the travel and tourism industry. The fact that the government will open up Visa on Arrival facilities to 150 countries, from the current 43, will result in a high inflow of tourists. The emphasis on restoration of World Heritage Sites is also likely to bode well for the sector as it will induce both domestic and foreign tourists to travel to these spots. Additionally, for a company such as ours, which offers complete travel solutions to MICE and Corporate clients, the reduction of corporate tax will result in a boost for the overall business”