The stage is set for the Union budget 2020-21. As the finance ministry gears up for the big day amid a slowing economy, uninspiring consumer demand and falling tax revenues, various industrial sectors and the public at large have voiced their expectations. The government, as always, will have to maintain a fine balance between boosting tax revenue and introducing tax reforms to increase demand, besides reviving the economy. A global consensus is being developed on framing rules to tax the digital economy. India has introduced ‘significant economic presence’ rules, but it is recommended that such rules be deferred till a global consensus is reached.

Publication: Mint

Date: January 31, 2020

After fighting e-commerce biggies Amazon and Flipkart for allegedly flouting FDI norms and resorting to “predatory pricing” to bleed India’s brick-and-mortar retail traders, the Confederation of All India Traders (CAIT) has decided to take the plunge into online retailing.CAIT, which has 70 million traders in the country as members, will soon start nationwide registration of traders to bring them on an e-commerce platform.The pilot project has already begun in Madhya Pradesh, where individual e-stores have been created for retail traders, said CAIT General Secretary Praveen Khandelwal.

Publication: The New Indian Express

Date: January 29, 2020

70 years ago, the Constitution of India segregated the powers of the central government and the states, providing a list of subjects on which the centre, the states, and both the centre and states could make laws. Matters of state importance, such as public health, tourism, trade, entertainment, amongst others, were kept within state government’s jurisdiction. Thus, local businesses in the state followed the state laws to carry on their operations.This segregation worked perfectly till the digital medium disrupted the brick and mortar world. In pre-ecommerce times, businesses complied with the laws of the State in which they were physically present, either directly or through their agents or distributors.

Publication: The Economic Times

Date: January 29, 2020

Budget 2020 Expectations for e-commerce: Supported by cashless transaction apps, which are safer and easier than ever before, as well as deeper penetration of inexpensive mobile data plans and better connectivity, the e-commerce industry in smaller cities across India is witnessing an increase in sales. Tier 2 to 5 cities and towns contribute more than 50 per cent to e-commerce and online retail, as an estimated 56 million+ digital shoppers from smaller cities and rural areas have adopted online platforms.

Publication: Financial Express

Date: January 29, 2020

Indian startups received 25 percent of the total $21 billion capital raised from private equity investors in India in 2018. Between January 2014 and November 2019, close to 550 Indian startups in the B2B (business to business) space raised $16.6 billion. These figures highlight the fact that the Indian startup ecosystem is a hotbed of interesting ideas with the entrepreneurial energy of Generation X and Y. The ecosystem is benefiting by India’s improvement on the ease of doing business index. However, access to capital is still an opportunity owing to the NBFC (non-banking financial companies) and NPA (non-performing assets) issues.

Publication: Money Control

Date: January 29, 2020

Govt needs to create a dedicated innovation fund in every sector, demand startups. Some of the policy reforms be it GST, Zero MDR or angel tax removal, need more clarity. Increasing consumer spending remains the top concern for most of the startups. It’s January 28 and we are just days away from the Union Budget 2020, which is said to be the biggest challenge for the Narendra Modi government. In the last one month, we have published a dozen articles discussing segment-wise demands and expectations and as we saw in our Budget 2020 preview series, industry stakeholders want some big reforms “as big as the 1991’s financial reform,” as one investor told us that could address the ongoing economic slowdown.

A comprehensive eCommerce policy would provide future direction and confidence in the industry and help investors/ entrepreneurs take decisions faster. There need to be incentives given out to the smaller businesses as against currently growing multinational monopoly, without jeopardizing the business confidence of foreign investors in India as an investment destination. Also, Govt. needs to come out with a special package for the logistics sector, especially smaller enterprises and start-ups. To start with, Govt. needs to enter a dialogue with logistics eCommerce start-ups and come in govt.-private partnership models for infrastructure/ tech/ skill development and tax sops for strengthening logistics in India.

Publication: Deccan Herald

Date: January 30, 2020

The investment by venture capitalists was quite strong in India in the fourth quarter of 2019, ending the year on a high note with a number of large mega-deals, said a new report from KPMG.These deals included a $1-billion funding round by PayTM and a $500-million round by Bengaluru-based business productivity company Udaan. “Consumer-focused technologies were a critical focus for VC investors in India; in addition to PayTM, online pharmacy company PharmEasy raised $220 million, while home furnishings company Urban Ladder raised $148 million,” said the “Venture Pulse Q4”2019″ report.

Publication: Outlook India

Date: January 30, 2020

The Indian economy faced a tough time last year. The country’s economic growth during the July-September period slipped to 4.5%—the slowest pace since 2013. The economic slowdown has led to a decline in domestic sales, job cuts across sectors, and trust deficit among investors. There’s a lot to fix as finance minister Nirmala Sitharaman readies to present the annual Budget 2020 on February 1. Besides large corporates and industry players, the startup community is eager to see what the government has in store. This will be a crucial Budget for the Narendra Modi-led National Democratic Alliance (NDA) government, which returned to power in May last year.

Publication: Forbes India

Date: January 30, 2020

Counterfeit and fake products have been a huge concern for Indian ecommerce, and a point of contention for the sellers and traders of genuine products. The minister of commerce and industry, Piyush Goyal, had told Lok Sabha in December 2019 that Indian consumers have filed 13,993 fraud ecommerce cases under the Consumer Protection Act, 1986 since August 2016. In a bid to tackle this, the Department for Promotion of Industry and Internal Trade (DPIIT) is working to ensure the upcoming ecommerce policy tries to control such counterfeiting.

Publication : Inc.42

Date : January 29, 2020

India is the third-largest startup ecosystem in the world with more than 50,000 startups operating currently. It is growing at an accelerated pace at 30% and holds a promising future. Due to the soaring popularity of the startup system, many young students are exploring entrepreneurship as a career right after completing their graduation or post-graduation instead of seeking employment as salaried professionals. They expect educational institutes and universities to offer entrepreneurship courses that could help them build necessary skills and competencies, introduce them to the nitty-gritty of startup business and provide them with a launchpad for their business ideas, products or processes.

Publication: India Today

Date:  January 30, 2020

The key to entrepreneurial activity and the resultant startup ecosystem in the country is to unlock capital inflow, whether it is from foreign or domestic investors. But Indian startups seem to be dependent on foreign capital, while domestic investors form only a modest pool. In light of the forthcoming Union Budget, iSPIRT has suggested a few measures that can bring about these changes. The think tank, which promotes Indian software product companies, especially startups, believes entrepreneurial activity can be stimulated by removing existing barriers, improving the ease of doing business and investor sentiment.

Publication: Yourstory

Date: January 30, 2020