Consumer, eCommerce and Retail sector expectations from Budget 2022: As Union Finance Minister Nirmala Sitharaman is all set to present her third Union Budget on February 1, 2022.
Here’s what the Consumer, eCommerce and Retail sector experts expects from Finance Minister Nirmala Sitharaman:
Mandeep Arora, Managing Director, UBON:
This year, the government is expected to take a progressive step towards making India a hub for the manufacture and export of electronic devices. Consumer electronics product export incentives and low GST. At the same time, analysts expect import tariffs on certain components to continue to rise.
I think it’s time to go beyond that. We believe that the budget needs to focus more on value creation, including special incentives and subsidies for consumer electronics and component manufacturing. We all agree that India has strong goodwill in the world market.
The country will have immense growth opportunities by taking advantage of innovative new technological aspects that facilitate the lives and governance of its citizens. We want a stronger impetus for reinventing the Digital India campaign with better reach, faster, more efficient technology, and a planned schedule.
Vipin Aggarwal, Co-Founder, Candes:
With the budget approaching we expect the government to rationalize the tax slabs for the consumer durables. Also to promote R&D and provide incentives for the local manufacturers.
With Covid-19 affecting the supply and demand both, the industry seeks support from the government.
Sujata Pawar, CO-Founder & CEO, Avni:
A lot of startups have entered the space of eco-friendly products. This is not just a leap to alter lifestyle, but also a contribution towards the environment. The government should come up with subsidies on eco-friendly products in all categories, and also encourage entrepreneurs to work towards organic replacements of various products. Lenient taxation could be looked at to promote the adoption of organic products by the end consumers too.
Nikhil Agarwal, Co-founder & Chief Corporate Development Officer, Powerhouse91:
The e-commerce industry was among the few industries which saw tremendous growth due to the COVID-19 outbreak. As the Indian e-commerce market is expected to grow to US$ 111.40 billion by 2025, technology will continue to drive growth for the industry in domestic as well as export markets. From a startup ecosystem perspective, relaxation in taxation laws and further simplification of compliances would help founders focus on other aspects of the business.
This year’s budget expectations are primarily focused on strengthening infrastructure, enabling end-to-end digitization, and supporting local brands. It would be helpful for the e-commerce sector if the government increases its focus on improving digital infrastructure in Tier II, III cities, and rural regions. This will inherently stimulate demand for e-commerce in these regions, and dramatically increase the geographical presence of D2C companies.
Margins have decreased massively during COVID due to high freight costs and manufacturing dependency on China. We expect a strong push from the government’s side to increase the penetration of ‘Make in India’ mission and invest heavily in the manufacturing sector reducing dependency on China. Hence, the ease of doing business and making Indian business competitive on a global scale should be the priority.