E-commerce Wishlist: Will Budget 2024 Deliver Tax Tweaks and Growth Boosters?

Budget 2024 Expectations: As we approach Budget 2024 in India, the e-commerce sector is buzzing with expectations. The government's initiative to help MSMEs promote their products and brands on e-commerce platforms is highly anticipated. Among other key demands, it will be necessary to develop a skilled workforce equipped with cyber security knowledge for safe and secure e-commerce transactions.

These are some of the key expectations of the e-commerce sector from Budget 2024. The upcoming budget will be watched to see how the government addresses these areas and shapes the future of e-commerce in India.

Here are some of the key areas it focuses on:

Dr. Somdatta Singh, Serial Entrepreneur, Founder & CEO Assiduus Global Inc, LP Angel Investor, Advisor to Government of India in E-Commerce Sector (Core Committee Member of WEP- Niti Aayog) underlined that adoption of technology is critical for success. retail industry. A well-structured budget that aims to grow businesses and promote innovation, with allocation of funds for research and development, integration of cutting-edge technologies such as artificial intelligence and data analysis, will enable businesses to stay in tune with consumer demand, he said. was .

Additionally, collaborative efforts involving government agencies, business leaders, and academic institutions can establish a shared working network that supports the start-up of new businesses.

Focus on smaller retailers

Singh urged that policy makers should give priority to focus on small retailers in Tier 2 and Tier 3 cities. These cities have stores with the potential to grow and compete with more established businesses.

The budget should allocate funds for skill up-gradation and adoption of technology. By investing in education and skill development, the government can uplift local businesses, enabling them to not only meet market challenges but also excel in the demanding retail landscape.

Singh also highlighted the role of open networks for digital commerce.

“I expect that this budget will support the implementation of the 'Open Network for ONDC' initiative. This initiative can empower MSMEs to access various e-commerce platforms without facing entry barriers, benefit from standardized data and processes,” said Singh.

MSME and e-commerce

Singh also explained how adoption of e-commerce by MSMEs will facilitate their access to domestic and international markets contributing to economic growth.

“Allocating budgetary resources to enable MSMEs to integrate e-commerce platforms into their business strategies will promote sustainable growth. Additionally, ONDC will play a key role in shaping the MSME ecosystem, enabling suppliers to reach a wider customer base and leverage diversified logistics for faster growth,” urged Singh.

ONDC Expectations from Budget 2024

ONDC said in a statement that this year's budget will be critical for the ONDC ecosystem of small startups, MSMEs and large enterprises across the country.

“In the budget, we hope for smoother operations and compliance in areas such as financial services, facilitating consumers and businesses to reap the maximum potential benefits from an open network like the ONDC network. We are confident that the government will continue to improve regulatory compliance requirements for emerging business models that rely on DPIs,” ONDC said.

The ONDC added that it looks forward to more schemes to boost digitization across the country, including small cities, towns and villages.

Technology for simplicity

UniCommerce, an e-commerce enabled SaaS platform, said India's vibrant retail sector, supported by an expanding e-commerce ecosystem, is constantly evolving to meet the needs of its users. Over the years, the government has integrated technological tools to simplify taxation, streamline logistics and promote the use of e-commerce to boost exports.