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Essence of E-commerce in Budget: India Plaza Founder

Update On :02 March 2016

Essence of E-commerce in Budget: India Plaza Founder

According to the founder of the first e-commerce company India Plaza Mr. ‎K Vaitheeswaran, the union budget for ecommerce industry was not much exciting.

GST and FDI in retail (including B2C e-commerce) are the two important things awaited by ecommerce industry. But these two things were not announced by finance minister Jaitley. As, the first will require Opposition parties' co-operation in passing the Bill and the second is an issue that impacts the Bharatiya Janta Party's merchant support base and may require some more political maneuvering.

Mr. ‎K Vaitheeswaran said that Rural Digital Literacy Vision is an announcement that was beneficial. Over six crore households will get access to computers and online trading platforms will be set up for farmers to trade on. This will expand the potential customer base for e-commerce firms since digital familiarity will lead to commerce soon enough. It is also an opportunity for Indian e-commerce firms to join hands with the government and help set up such rural trading platforms.

He said that another good thing is that the infrastructure focus of building more roads quickly, dedicated freight rail corridors and also the plan to develop over 160 smaller airports. All these steps should make movement of physical goods easier and help the e-commerce industry manage deliveries better and faster although it is still sometime out in the future. The more immediate impact though may come from the additional savings in the hands of people living in rentals in towns and cities, a part of which can be spent shopping online.

He added that but the most important news for e-commerce firms are a hidden message and I hope the industry will notice it. The government has chosen to go for fiscal prudence and gross deficit is being maintained at 3.5%. This is awesome keeping in mind the expected financial headwinds globally. If the government can tighten their belts, surely modern young e-commerce firms can also show some financial discipline, curb wastage, focus on sustainable earnings and not just depend on supply of external capital to fund ever growing losses.

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