“With increase in penetration of internet and smartphone usage in both urban as well as in rural India, the e-commerce space is mushrooming day-by-day in India. A 2022 RAI report predicts that online shopping in India will increase from its present 7% share of the retail market to over 19% by 2030.
eCommerce has revolutionized the way business is done in India. It has fueled consumption in recent years by providing easy access to end-users and has created numerous new job opportunities. What truly pushed this eCommerce sector to the next level in India in the past few years was the government’s intervention and initiatives taken on the technology and digitization fronts. These have given a boost to technological innovations, new modes of digital payments, and the development of local logistics support.
Though the eCommerce sector has blossomed from infancy to maturity, it is still grappling with pre-dated laws that are not apt for its nuanced and evolving requirements. The government is already taking steps to build an updated regulatory structure for eCommerce, and we expect the budget to further build on the same. The upcoming budget is expected to provide financial and regulatory support to the digitization of Small and Medium businesses, as well as Tier 2+ cities, as a major chunk of new eCommerce growth is expected from there. The government should also strongly focus on building the right support infrastructure for these segments for the eCommerce sector to truly accelerate and help realize the vision of digital India. The ONDC initiative is a step in this direction and we expect the budget
We also expect that the government will provide clarity on the tax obligations of e-commerce companies, sellers, and brands, as it will help them further streamline their operations and contribute to industrialization 5.0.”
