With a decision to set up 500,000 Wi-Fi hotspots providing broadband access to 50 million rural citizens, a digitally connected economy would not only put the country on a path to scaling greater heights, but also strengthen the industry. Moreover, it offers sectors such as e-commerce that have a large customer base in tier-II and -III towns and villages, the much-needed impetus to penetrate deeper into the remotest pockets.
Talking of specifics, the proposal by the Finance Minister on the use of blockchain technology to ensure credibility and safety of digital transactions will certainly encourage a large section of the society to go digital and give a fillip to the business in the long-run.
The Finance Minister has described infrastructure as “the growth-driver of the economy.” Significant investments in roadways (9,000kms new highways), railways (3,600 km track renewal, 18,000 km double tracks) and airports will help any organisation that manages a supply chain organisation. This will also boost demand for the e-commerce industry and enable it to become more seamless and efficient from a logistics standpoint.
The allocation to the textiles sector to the tune of Rs 71.48 billion will bring cheer to a large section who are directly or indirectly dependent on the same, while also helping e-commerce businesses dealing in fashion and apparel, such as ourselves. I’m confident that the government’s measures to improve the standard of living of traditional weavers and craftsmen will be successful.
With industries looking at AI and allied technology in a big way, the NITI Aayog’s plan to establish a national programme to direct efforts towards Artificial Intelligence/Machine Learning and Big Data, including research and development of its applications, will place India on the cutting-edge of technology.
The proposal to implement corporate tax at the rate of 25 per cent for companies with revenue of up to Rs 2.5 billion will certainly have a good impact on medium-sized enterprises that comprise a large bulk of suppliers to the industry. The MSME sector getting Rs 37.94 billion in the form of capital infusion and interest subsidy will be another booster.
However, there has been an increase in customs duty on certain segments such as footwear, cosmetics, watches, toys and more, which is sure to put pressure on brands. Another area of apprehension is angel tax, which found no mention in the Budget.
Overall, it has been a positive Budget, with a focus on inclusive growth. The government will have to ensure that the schemes and policies outlined in the Budget reach the last mile as early as possible and achieve the desired results. This year’s Economic Survey had projected India’s e-commerce market to be $33 billion, growing by 19.1 per cent from 2016-17. With this forward-looking Budget, we expect the sector to grow at a fast pace. The writer is CEO, Myntra
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in