Updated: Sep 4, 2020
The government has sent a lot of positive signals for all things digital. The big headline seems to be the government’s announcement of setting up 5 Lakh Wi-Fi hotspots that may connect 5 crore rural customers into the digital world that can drive a whole new base of customers for online retailing. The direct and indirect benefit in terms of employment generation, choice of services & monetisation of skills & resources are immense, if built and adopted in the right way. Additionally, two distinct benefits seem likely from the budget announcements.
Reduction of tax from 30% to 25% for companies’ upto 250 crore will benefit the retailing companies a great deal. A lot of start up Ecommerce companies and service providers in its ecosystem should benefit from this announcement. Savings from this should give some headroom to companies to adopt newer channels of sales, invest in technology for serving their customers, automate processes. Secondly, the continued focus and commitment of the government in building rural economy and cashless economy helps both, the demand side and supply side of Ecommerce and retailing. Overall the basic tenets of Ecommerce and online practices are transferable to the governments focus industries like healthcare, education, infrastructure, rural etc to improve efficiency, build transparency and speed. The government now needs to create a conducive environment for companies to come forward to make the most of it.