“With ambitious plans like Digital India, the Union Budget 2016-17 is expected to deliver on providing investments in India’s technology infrastructure. A substantial amount would be required to develop a robust network infrastructure across the country to build the foundation for India’s digital economy,” says Vikas Malpani, co-founder, Commonfloor.com
Budget 2016: The e-commerce industry has disrupted the market thoroughly and brought so many innovations to the fore. However, it is not without its share of challenges. As an online merchant, safety and security of online monetary transactions is one of the most critical issues the industry faces and one that needs urgent attention, according to Vikas Malpani, co-founder, Commonfloor.com. The other drawbacks according to Malpani, include:
- Limited availability of credit cards and a nationwide credit card system
- Underdeveloped transportation infrastructure
- Lack of skilled human resources and key technologies. Even within this segment, there is a surprising lack of awareness or lack of trust when it comes to online businesses and their inherent functionalities that can simplify life.
- Fear factor, the mindset that online transactions are unsafe is hugely prevalent in Indian consumers.Once this mental block clears, it creates that many customers and the industry grows even further.
“With ambitious plans like Digital India, the Union Budget 2016-17 is expected to deliver on providing investments in India’s technology infrastructure. A substantial amount would be required to develop a robust network infrastructure across the country to build the foundation for India’s digital economy,” said Malpani.
He also said that programs such as Digital India, Smart cities and Skill India require the creation of technological infrastructure that will need budgetary support.”With Smart Cities bringing in lots of opportunities for private developers, the real estate sector expects government to further liberalize norms and allow FDI in construction and affordable housing apart from re-introducing tax benefits under section 80 IB (10) of the Income Tax Act,” he added.
Speaking about taxation laws, he said that in India especially in the e-commerce industry as of 2015, the taxation laws are advent of multiple e-commerce ventures in India. The Government is finding it difficult to adapt its existing rules to meet the requirement of newer kind of businesses. “The allocation of taxing rights must be based on mutually agreed principles and a common man understanding of how these principles should be applied,” Malpani asserted.
While the Economic Survey appreciated the services sector for being the primary trigger in growth in FY15, importance towards a promising FY16 in the form of reduced vulnerabilities, coupled with a heightened sense of expectation for increase in growth, better infrastructure and steps taken towards increasing manufacturing should lead to a better market, he concluded.
