The upcoming budget to be presented by Finance Minister should be developed keeping in mind the penetration potential that the sector has especially to the interior geographies of the country while the critical asks would be to simplify GST for e-commerce vendors and bring more parity among offline and online vendors, Sudeep Sen, AVP, Teamlease Services told Financial Express Online. Among other two important recommendations include supporting “small and local Kirana stores by freeing up locked up working capital as the economy already dealing with sluggish credit growth and providing more clarity on priority guidelines pertaining to e-commerce,” Sen added. While lack of access to affordable credit remains a challenge for small businesses, e-commerce platforms such as Amazon and Flipkart have been increasingly focusing on getting more sellers, which are small enterprises, onboard to sell across India.
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This is likely to not only create an ecosystem of growth but also result in an increase in employment opportunities in the sector. E-commerce has been witnessing an incremental demand of 22-25 per cent in FY 2020 and another 10-15 per cent was visible during the festive seasons. “We expect the employment in related industries like logistics, warehouse, and storage also to go up,” said Sen. The boost to the sector can trigger growing demand for profiles such as drivers, pickers, packers and technical specialists even as the positive approach from the government can also lead to employment opportunities for craftsmen, traditional artisans, merchants and sellers. According to Sen.
Source: Financial Express