India is set to be an economic powerhouse. We have talent, world-class education and a growing breed of entrepreneurs that’s set to put the country on the world map. While already benefiting from support from government and private players, more focused investment could help the Indian economy grow leaps and bounds. In the internet economy, where Flipkart operates, this phenomenon is already making its presence felt.
Of course, e-commerce industry in the country is still at a nascent stage, but the sector has recently seen a lot of investment from key industry/government players, given its growth prospects. However, for this growth to be fully realised, there are a few areas that need to be addressed on priority.
Our attempt is to give a convenient, hassle-free channel for shopping to everyone in the country who has access to the internet. And, for this, we would like to be able to supply our products to customers across the country. However, tax laws vary significantly across the states and it’s a challenge to move goods from one state to another. A uniform tax regime would go a long way in removing this constraint and help us scale up much faster.
Another issue that needs to be considered is building of an ecosystem for e-commerce in the country. There are critical areas like logistics, payments and internet infrastructure where large investments are required to cater to the projected demand. These have lagged and not kept pace with the rapid growth of e-commerce.
For example, Flipkart had to start its own logistics service when existing players were not able to cater to our needs. Similarly, online payments suffer from large failure rates and it would need concerted efforts from various players, including regulators, to bring it on a par with developed markets.
An improvement through a conducive environment for investment in these infrastructural areas will help boost the growth of the e-commerce in India, while simultaneously creating opportunities for skilled labour, largely contributing to the economic welfare of the country.
Sachin Bansal
Co-Founder and CEO, Flipkart