Union Budget 2014 And Its Percussion On Ecommerce In India

This year election was the most hyped one in after a long hiatus! So was the union budget which aimed at radical reform in term of improving economic situation.

From a long time, there was so much pending demand of E commerce sector from government. E-commerce is set to become a $30-billion industry in the next five years that will not only create enormous employment opportunity but also facilitates quick access to product in the hand of customers.


To and fro of goods has been an area of concern for e commerce players that unnecessary increase the costing of this industry. In this budget, extension of railway logistics is indeed a positive initiative. It will result in increase in reach, speed and certainty not to mention decrease the costing burden from e commerce players.

Next biggest challenge is asymmetric entry tax regimes followed by states, resulting in difficulties in delivering goods to customers in these states. This affects both the small payers and the customers. Implementation of GST by end of this year is a welcome decision and it will accelerate the business growth.

The most promising announcement has been FDI in E commerce business. Announcement of opening up of e-commerce space to FDI will provide much required assurance of capital flow to Indian players and healthy competition that will eventually benefit to Customers.

The last things that budget cover is that manufacturing units will be allowed to sell their products through retail including e-commerce platforms without any additional approval.

All of the above announcements are indeed acclamatory and aims to fillip the Online space that will eventually result in boosting up the overall economy as well.

Author: blogmart2web

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