Impact on Retail, FMCG & E-Commerce Sector

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As per the industry experts, Budget 2018 has opened new avenues for consumption in several ways. RAI (Retailers Association of India) said the reduction in corporate tax to 25% for MSME companies and achieving turnover up to Rs 250 crore is a great move, which will offer plethora of benefits to retailers.

Let’s get a brief idea as to what industry experts have to say about this year’s budget for Retail, FMCG & E-commerce sectors:
Future Group
Textile, footwear and leather industries will hugely benefit from this year’s budget, as said by Kishore Biyani – Group CEO, Future Group. The steps announced in the budget will pave the way to attract large corporate investments in this sector and will attract players like us to establish a stronger link between the farmers of rural India and consumers of urban India. Further, the government’s focus on easing the labor norms and budgetary support towards the textile and footwear industry will help to grow this sector immensely. With the focus on farmers and MSME sector, the government is confident of bringing whopping growth trajectory of 8%.

RAI (Retailers Association of India)
The key focus areas for this year’s budget are agriculture, healthcare, infrastructure and rural development as said by Kumar Rajagopalan, CEO, Retailers Association of India. The noticeable reduction in corporate tax to 25% announced for MSME companies with a turnover of Rs 250 crore is a welcome move, which will benefit several retailers.


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This year’s Union Budget will lead to increased investments in Digital India, which will further digitize toll payments opening new avenues for digital adoption as said by Anupam Pahuja, Managing Director and Country Manager, PayPal India. Initiatives taken for supporting the development and adoption of new advanced technologies will prove a game changer for digital payment sector. Businesses will be assigned a unique ID, which in turn will prove helpful in building a trusted eco-system for digital payments.

This year’s budget has given an increase to infrastructure spends and to the MSME sector as said by Sanjay Sethi, CEO & co-founder, ShopClues. This sector forms the main part of the economy and this boost ensures higher consumption and production. The decision made by the government will create 10,000 Wi-Fi hotspots in rural India will prompt broadband access to those users, who have no or very less access to realm of internet. This will lead to the development of digital commerce industry and encourage public, to go the cashless economy way.

Overall, the Union Budget 2018 is focused on improving the quality of life in Rural India.


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