With the launch of ‘Start-Up India, Stand-Up India’ Action plan, the growing e-commerce industry has got positive directions from the Govt. but it expects more clarity on certain aspects. The industry is undergoing a paradigm shift and bringing in a lot of innovation and change. The e-commerce industry is growing at a faster pace with the increasing use of mobile and internet. According to Assocham, the e-commerce sector will be worth USD 38 billion by 2016.
Clarity on FDI & GST Roadmap
The E-Commerce industry seeks the Budget to give more clarity on FDI policies and GST roadmap. Taxes such as CST, VAT, excise and service taxes among others needs to simplified for smooth functioning of the industry. Maximum job opportunities can be generated in the industry, with relaxation of FDI limit. Clarity in processes & systems and Single Window System will help the sector flourish at faster pace.”
Considering that E-Commerce companies are answerable to Venture Capitalists, who have invested in the venture, it is important that the Govt. ensures implementation of measure like removal of interest on long term capital gain, when capital is reinvested in startup. Majors like this will motivate VCs to rotate money and will create a very conducive environment for both startups and investors to flourish
Gems & Jewelry Sector
The Indian jewellery manufacturers and retailers make a significant contribution of 6 to 7 % towards Indian GDP, creating value addition of Rs 100,000 crores and also contribute 14% towards exports.
The upcoming Budget should provide tax incentives and relief measures for the labor-intensive gems and jewelry sector to give a boost to the jewelry manufacturing sector as well as exports.We are hoping to see excise exemption on Fashion Jewelry this year.
The brand currently exports to international markets through its online presence on international marketplaces such as Amazon.com, Amazon.uk, Jadopado.com, etc. The future channel expansion also includes opening of physical stores in international markets covering Gulf, US and European markets.
We believe that Honorable Finance Minister will bring in some effective measures to bring down Gold Imports.
The Gems & Jewelry segment is also one of the top employment generating industries, where 90% of manufacturing is by ‘karigars’ and 80% of retailing by ‘independent’ jewelers.
This budget should have some favorable reforms for players like Voylla.com, who have been contributing to Govt. initiatives such as ‘Make in India’ & ‘National Skill Development’. We expect to see a raise in custom duty and a drop in excise duty on imitation jewelry.
The brand supports ‘Make in India’ initiative and has opened up new avenues of employment for labours engaged in jewelry designing, as the brand has set up its state-of-the-art manufacturing facility in Jaipur, Rajasthan. While the Gold market might be witnessing a slump but the imitation jewelry market is offering these labor new employment avenues.
The author of the article is Mr. Vishwas Shringi, Founder of Voylla.com
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the publication