Post Budget Reactions from Mr. Rajiv Kumar, Founder & CEO of StoreHippo.com

The Union Budget for 2016-17 spells growth for the E-commerce sector.

Start-Up Ssector

The FM has announced plans of 9 pillars for transforming India and one amongst them is EASE OF DOING BUSINESS to enable the people to realize their full potential. The govt has announced Tax holiday for Start-Ups for three of five years from setting up the company plus the Govt. has announced that it will introduce a bill to register Start-Ups in a day.

This will give a boost to entrepreneurship in India, and more people will be ready to take the plunge. Starting a business in India has not been easy in the past due to many legal and technical hassles but now Govt. has created a climate for small businesses and start-ups to flourish. Now, more people will be ready to start a business and we will see more number of technology based Start-Ups.

Better infrastructure will lead to efficient logistics

Another pillar announced by govt for transforming India is Infrastructure Investment. The total allocation for road construction, is Rs 97,000 crore. More number of airports will also be developed. This is an important announcement since with improvement of infrastructure comes better roads, highways and improved connectivity and in turn leads to efficient logistics. The success of a business like e-commerce depends upon Logistics. In fact, last mile delivery is difficult for many e-commerce firms. If logistics, the backbone of e-commerce improves; it spells growth for e-commerce sector.

Digital Literacy

Another important announcement has been of schemes for digital literacy for rural India which will cover 6 crore households in the next three years. Digital literacy is the foundation of building a digital India. The e-commerce sector will benefit in the long term. National Digital Literacy Mission will raise awareness levels and it can have a positive impact on development of business ideas in e-commerce sector that use digital technologies.

Govt. has also outlined a road map for boosting domestic demand which would definitely help e commerce and start ups in the long run.

Source : Equity Bulls

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