As the world is recovering from the COVID-19 pandemic, 2022-2023 Union budget session is a booster dose for the economic growth. This budget will not only widen the coverage of incentives for business ecosystem but will further strengthen the overall digital ecosystem. India's e-commerce penetration is expected to double to 11% by 2024. E-retail will benefit millions of customers across India, exponentially by increasing merchandise choice, price transparency, and augmenting access and convenience. Emphasis on increase in rural outreach and rural consumption by providing/promoting better internet connectivity all over India will provide further impetus to this sector.
This budget has given a digital thrust to the economy as the actions taken by the government on technology and digitisation, especially around innovations, new modes of digital currency/ payments, and the development of local logistics support will be some of the key growth drivers of the Indian retail & e-commerce sector. Also, the budget’s focus on increased capital expenditure, logistics & supply chain, export promotion, etc are welcome steps likely to support the overall growth in consumer and retail sector in medium to long term.
Items like cut & polished diamonds, frozen mussels, squids, cocoa beans, etc are set to get cheaper while imported items like imitation jewellery, headphones, earphones, umbrella will cost more to promote domestic manufacturing. Reforms in the 2022- 2023 Union Budget will be instrumental in bringing structural changes towards driving India on the path of Atmanirbhar Bharat and help in becoming more competitive.
Among the major announcements made yesterday, few of the notable ones are mentioned below:-
| 1 | Encouraging Digital Payments |
Highlight- 75 digital banking units to be setup in 75 districts by scheduled commercial banks Implication- Increased digital payments systems will not only make digital payments user-friendly and economical but will also help secure transactions in the space, and enable offshoots to the e-commerce/m-commerce to grow, thereby, increasing income and generating employment. |
| 2 |
5G Digital Transformation |
Highlight- Rollout of 5G mobile services by private telecom providers under the scheme for design led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas Implication- Equal development opportunities through e- services, communication facility and resources in all remote & rural areas |
| 3 |
Digital Ecosystem for Education & Skilling |
Highlight- Digital ecosystem for skilling and livelihood will be launched which will aims to skill, reskill, upskill citizens through online training. API based skill credentials, payment layers to find relevant jobs and opportunities Implication- This move will boost lot of e-commerce start-ups & MSME in education sector with support from state governments |
| 4 | Raise for HealthTech |
Highlights - An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and health facilities, unique health identity and universal access to health facilities Implication- The National Digital Health Ecosystem framework would make health data more organised and accessible. This would be a great enabler for emerging business in the HealthTech sector |
| 5 |
Boost to Digital Infrastructure |
Highlights- Vibrant Villages Programme to cover borderland homes and provide digitization and support for livelihoods Implication- A boost to infrastructure and digital economy will lead to a proportionate increase in logistics operations, which are important to retail and e-commerce entities and further focus on exports will help retailers looking at India as a sourcing destination |
| 6 |
Push to Animation and gaming sector |
Highlights- AVGC (Animation, Visual Effects, Gaming, and Comics) sector offers immense potential to employ youth. An AVGC taskforce to be setup to build domestic capacity to serve the market and meet global demand Implication- This move is set to boost a lot of upcoming businesses and start-ups in the gaming and entertainment sector and also to the e-commerce sector |
| 7 |
Change in Customs Duties |
Highlights- Gems & Jewellery – customs duties on cut and polished diamonds & gemstones to be reduced to 5% along with duties on imitation jewellery raised to discourage their imports. Also, government will facilitate export of jewellery through e-commerce Implication- The reduction of duty will boost the jewellery retail business. Governments initiative to facilitate export through e-commerce will also benefit the jewellery trade |
