IKEA is now letting customers pay for goods with their time. Yes, that’s right: the more time customers spend travelling to IKEA, the more they can buy. Because beginning from this month, IKEA Dubai is running a campaign that will allow customers to spend their time as a currency, simply by showing IKEA checkout staff their Google Maps timeline, which proves how much time they’ve spent travelling to IKEA stores. While restricted at this moment in time to IKEA Dubai, this promotion opens the door to a significant and profound change in how consumers purchase goods, and in how they relate to brands.

Publication: Forbes India

Date: February 17, 2020

At a recent event, the chairperson of the Competition Commission of India (CCI) cautioned against the creation of large digital platforms and the agglomeration of data in the hands of a few entities. However, the extent to which this is a policy concern merits careful evaluation, keeping in mind the fact that political considerations have long dictated the government’s response to e-commerce players and other digital platforms. Any attempt to reform competition law for the digital age must instead focus on the actual cause for harm and then tailor remedies that address this cause.

Publication: Hindustan Times

Date: February 17, 2020

The mandate for e-commerce platforms to deduct 1 percent TDS from sellers will add an undue burden on them, which “worsens the regulatory bias” against online platforms, industry body IAMAI said on Monday. The government, in the Budget, announced a new levy of 1 percent TDS (tax deducted at source) on e-commerce transactions, which is to be collected from the sellers by the e-commerce companies. “Deduction of TDS, over and above TCS deduction under GST, is yet another compliance on digital platforms that are not applicable to their offline counterparts, which worsens the regulatory bias against online platforms,” the Internet and Mobile Association of India (IAMAI) said in a statement.

Publication: Outlook Business

Date: February 17, 2020

Over the past six years, India has emerged as one of the most exciting markets in the world for internet startups. Billions of dollars have been poured into startups since 2014. These monies have been spent by e-commerce companies, transportation apps, food delivery firms and others on attracting customers to their platforms. Key stakeholders, including foreign investors, remain bullish on the prospects of Indian startups. Increasing internet penetration, fast mobile internet connectivity and rising incomes will continue to drive capital into internet startups that are attempting to unlock the potential of the country’s large consumer base.

Publication: Mint

Date: February 18, 2020

Customers retained are customers gained. Customer retention is key to building a brand and proving to the other players in the market that you offer consumers something that nobody else can. Online retail is fast-growing in every term of the phrase. Consumers today want everything delivered home by just using the click of a button. With smartphones becoming ubiquitous devices, the increase in online shopping has been exponential. E-commerce sites have their tasks cut out for them and it is a matter of who can handle the sprints and the marathons. Creating a brand that people trust is not an easy task but once you do it, your business will scale new heights.

Publication: ET CIO

Date: February 18, ...CRME-commerce

The start-up ecosystem is one of the fastest-growing in the world. India has become a start-up hub and is the third-largest start-up ecosystem in the world, having added over 1300 start-ups in 2019. India’s start-up ecosystem has a major impact on the country’s economy and start-ups being successful would be a boost for the overall economy. However, one of the major challenges most start-ups face is that of raising funds. Although the government has allocated a large number of funds to the start-u community and there has been a significant rise in the number of start-up incubators, there is scope for improvement.

Publication: Financial Express

Date: February 16, 2020

As online sales continue to grow, the necessity for digital compliance solutions for e-commerce platforms is increasingly clear. On top of filing your annual taxes with the IRS, there are several other compliance requirements business owners must be aware of. Failure to maintain a compliant status can lead to significant fines or operational restrictions on your online platform. While legal compliance has historically been rather straightforward, the matter has certainly complicated with the introduction of digital solutions. However, strong digital compliance is essential to protect your business from regulatory pitfalls.

Publication: CXO today.com

Date: February 15, 2020

It is believed that m-commerce or mobile commerce will be the next disruption in e-commerce space. It comes as no surprise then that almost 51 per cent of online sales volume is via mobile devices in India, compared to 39 per cent global average. India seems to be running much ahead in the m-commerce disruption as globally only 43 per cent consumers prefer using mobile phones for shopping. Indian consumers spend an average of INR 10,000 per month via mobile devices and as much as 83% consumers make an online purchase via mobile phone at least once a week.

Publication: Entrepreneur India

Date: Feb 15, 2020

In light of the e-commerce tax announced by the government during the Union Budget 2020, India’s major e-commerce companies raised red flags on the plan to charge TDS at the point of transaction. A Reuters report said that Amazon and Flipkart along with other e-commerce platforms are demanding the scaling back of the proposed e-commerce tax deducted at source (TDS) on third-party sellers on their platforms. To begin with, the budget had proposed bringing participants of e-commerce (sellers) within the tax net. The budget proposed to insert a new section 194-O to provide a new levy of TDS at the rate of 1%.

Publication: Inc42

Date: February 16, 2020

Soon, Indian startups will be able to list directly in India and overseas markets, confirmed Atanu Chakraborty, secretary at the department of economic affairs (DAE) in the finance ministry. Speaking at an interactive session on ‘Budget and Beyond’ at NITI Aayog, Chakraborty reportedly said, “Lots of companies do want to list both in India and abroad at the same time. We welcome the suggestion that could make the process more seamless.” The move will provide Indian startups with additional avenues for fundraising. Sequoia Capital India MD had also recommended the govt to allow Indian startups to list abroad.

Publication: Inc42

Date: February 16, 2020

The courtroom battle between e-commerce giant Amazon and trade bodies, the Confederation of All India Traders (CAIT) and Delhi Vyapar Mahasangh (DVM), is expected to have a bearing on the upcoming e-commerce policy, according to people familiar with the matter. The case may drag for a few years, experts say, as CAIT and DVM have said they will appeal against the interim relief granted to Amazon on Friday. The Karnataka High Court stayed the Competition Commission of India’s (CCI’s) investigation into the alleged anti-competitive practices on the part of the e-commerce giant.

Publication: Business Standard

Date: February 16, 2020

Commerce and Industry Minister Piyush Goyal on Thursday asked e-commerce players to strictly adhere to FDI norms, saying it “certainly does not look and feel and smell right” when a company makes a loss of Rs 6,000 crore on a turnover of Rs 5,000 crore. Goyal, who had earlier remarked that e-commerce giant Amazon was not doing any favour to India by announcing USD 1 billion investment in the country as they are financing their losses, also reiterated that neither the Competition Commission of India (CCI) nor his ministry would have to probe on fair trade practices if e-commerce players “can stick within the letter and spirit of the law”.

Publication: Outlook India

Date: February 13, 2020

One of the more talked-about taxation issues in recent times has been taxation of the digitized economy. While the OECD, through its base erosion and profit shifting or BEPS project, is working with more than 130 countries to arrive at a consensus-based approach for determining the tax rules in the digitized world, countries have been introducing unilateral measures. India was one of the earliest movers and started changing the tax laws aimed at the taxation of digitized companies with the introduction of an Equalisation Levy a few years back.

Publication: Bloomberg Quint

Date: February 13, 2020

Jon Abrahamsson Ring, a former assistant to furniture retailer IKEA’s founder Ingvar Kamprad, has been named the new chief executive officer (CEO) of the Inter IKEA Group, the company said Tuesday. Abrahamsson Ring, 45, will take over the reins on September 1, replacing Torbjorn Loof, 54, who resigned after seven years at the head of the group, it said in a statement. Under Loof’s management, the Swedish flat-pack furniture company expanded into 15 new markets and is scheduled to open its first South American store in Chile next year.

Publication: Yourstory

Date: February 12, 2020

Startups are faster and more flexible than mature and traditional businesses. Angel investment networks are easy, convenient and time-saving channels to invest in startups. Startups seek the guidance of subject matter experts and are able to pay for short-term consulting. “I measure my performance in the startup ecosystem by my LOI—learning on investment”~Dr. Aniruddha Malpani, Renowned angel investor.

Publication: Inc42

Date: February 13, 2020

IKEA’s love affair with India may have hit a speedbump. On Jan. 15, the Swedish company recalled millions of its “Made in India” Troligtvis travel mugs from 400 stores globally as “test reports showed that the product may (contain) migrate levels of chemicals exceeding the prescribed limits.” “The risk of any immediate negative health effect is very low but IKEA urges customers that have the travel mug to return the product to any IKEA store for a full refund,” the company said in a statement.

Publication: Quartz India

Date: February 12, 2020

In the 1940s, Austrian economist Joseph Schumpeter proposed the idea of “creative destruction” to describe the collapse of an established order and the innovation and entrepreneurship that replaced it with something new. That was well before the internet existed, but the idea is an apt framing for the way e-commerce and companies such as Amazon have changed retail. Under a wave of bankruptcies and store closures, the old world of retail is crumbling, supplanted by one that’s increasingly digital as well as physical. The consequences are more significant than just which company’s quarterly sales are up or who has a hot stock. How we shop is changing, and that’s affecting how we work.

Publication: Quartz India

Date: February 11, 2020

Cooking for ways to express herself, Akanksha Deo Sharma dropped out of studying Commerce after the first year to join the National Institute of Fashion Technology, New Delhi. It was here that her association with the world’s largest furniture retailer Ikea, where she is the only Indian designer, started. Soon after her graduation in 2016, a 10-month internship at the mothership in Sweden was followed by a job offer. Deo Sharma joined in 2017. Today, working in Gurugram, she brings forth a Scandinavian aesthetic rooted in Indian culture, combining her knowledge of Indian textile history, handicrafts and construction techniques to develop products that are minimal, clean and playful.

Publication: Forbes India

Date: February 10, 2020

Pidilite Industries, the makers of popular homegrown adhesive brand Fevicol, has led a $40 million funding round in online furniture retailer Pepperfry, as it looks to make strategic bets in new-age companies to complement its core product offering. In December, Pidilite co-invested $30 million in online interior design company Home Lane. Globally and in India, companies such as Pidilite are betting on startups to access newer customers, products, markets, technologies and trends. Coca Cola, Unilever, Danone, Godrej Consumer and Marico have made such long-term and typically strategic investments. “With the pace of transformation currently under way, investing in disruptors gives established players a shorter route to market,” said Utkarsh Sinha, managing director, Bexley Advisors.

Publication: The Economic Times

Date: ...Pepperfry

Today, the term “conversion rate optimization” (or CRO) is the talk of the town (though that town is probably just inhabited by marketers). Indeed, the practice of modifying elements on a website and then testing it has proved its utility in the marketer’s toolset. “Does a green button perform better than a red button?” asks one marketer to another. “Well, let’s find out!” bursts the other. That’s the start of CRO. Nowadays, a lot of e-commerce businesses are solely obsessed with paid customer acquisition on Facebook, Instagram, Google, Snapchat and other channels. What most of them are forgetting is that you can double your sales by either driving twice more traffic or by turning more existing visitors into buyers through ...E-commerce optimization

India is rapidly moving towards becoming one of the largest startup ecosystems in the world, as per statistics. It is ever-evolving, with the launch of more than 49,000 start-ups that have raised a combined total of more than $51 billion from 2008 to 2018. Research from Tracxn shows that Indian startups have raised $14.5 billion in 2019, breaking the previous record of $10.6 billion. Ranging from backgrounds like e-commerce and fintech to logistics and consumer services, these start-ups have already created a value of over $130 billion. With 26 “unicorns” – $1+ billion valued startups cumulatively worth more than $73 billion – and 31 “Soonicorns” – companies on the path to becoming unicorns by 2020– startups are redefining the Indian ...E-commerceSoonicornsStartups

The advent of e-commerce has shifted the locus of retail business in both the global and domestic context by bringing the store to the customer, obviating the need for customers to visit the store. Aided by a thriving digital economy with Rs 500 million internet users, India’s e-commerce sector recorded the second-highest year-on-year growth at 31.9 percent across countries in 2019. In 2017, India’s e-commerce sector was valued at $24 billion, representing 3 percent of total retail sales.

Publication: Business Standard

Date: February 8, 2020

Over the past few years, the city of Hyderabad has shot to international fame. From IKEA’s first India store to Amazon’s largest campus in the world, Hyderabad has been the go-to destination for many global corporate giants, especially technology companies In fact, in the second half of 2019, Hyderabad raced ahead of Bengaluru in terms of office space absorption. According to a Knight Frank report, the Hyderabad office market saw great demand in 2019, accounting for 12.8 million sq ft in terms of transactions, nearly twice its previous annual high. Hyderabad was also at the top spot as the best city to live in as per the Mercer’s Quality of Living (India) Rankings 2019. Hyderabad was also selected among the ...HyderabadIKEA

Amazon has infused over Rs 2,500 crore into two of its Indian businesses, Amazon Seller Services and Amazon Data Services India, according to regulatory filings.The investment comes just days after its founder and the world’s richest man Jeff Bezos announced USD 1 billion investment in digitising small and medium enterprises (SMEs) in the country. An e-mail sent to the company did not elicit a response.As per regulatory documents sourced from business intelligence platform paper.vc, the board of Amazon Seller Services has allotted shares worth about Rs 2,208 crore to Amazon Corporate Holdings and Amazon.com Inc. The resolution to this effect was approved on January 24.

Publication: The Economic Times

Date: February 8, 2020

Prime Minister Narendra Modi on Thursday underlined the need for working together to make India a $5 trillion economy, while stressing that the government has been able to maintain macro-economic stability amid a tough global environment. “We have taken many initiatives in industry, irrigation, social infrastructure, rural infrastructure, ports, and waterways. Among the things that will drive India’s progress is next-generation infrastructure,” Modi said adding that Stand-up India, Startup India, and Mudra schemes are adding prosperity in the lives of people.

Publication: Yourstory

Date: February 7, 2020

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Commerce Ministry is examining complaints alleging predatory pricing and excessive discounts on e-commerce platforms, Parliament was informed on Thursday.”Representations have been received in this Department alleging that some e-commerce platforms are engaged in predatory pricing and are providing excessive discounts,” Commerce Minister Piyush Goyal told the Lok Sabha in a written reply.”The extant Foreign Direct Investment (FDI) policy on e-commerce sector, inter-alia, specifies that e-commerce marketplaces will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field. These representations are under examination,” he said.

Publication: Outlook India

Date: February 7, 2020

The Union finance minister presented Budget 2020 in Parliament on 1 February against the backdrop of a slowing economy at home and globally. It was indeed a tough balancing act for the government amid high expectations from all stakeholders. Keeping the multiple demands in mind, the budget is woven around the three key themes of an ‘aspirational India’, ‘economic development’ and a ‘caring society’, with an aim to stimulate growth, simplify tax structure and bring ease of compliance and doing business in India.

Publication: Mint

Date: February 7, 2020

While e-tailers may have done well for themselves in segments such as apparel and smartphones, they are yet to strike gold with the furniture category. According to RedSeer Consulting, the online furniture market in India grew at a CAGR of approximately 80-85% to reach approximately $310 million in FY19 as compared to $104 million in FY17, and is likely to touch $700 million in FY20. But despite this rapid growth, online has less than 3% share in the overall furniture market which is pegged at $17 billion.

Publication: Financial Express

Date: February 10, 2020

At a time when Jeff Bezos has announced that Amazon would invest $1 billion in “digitizing small and medium businesses” in India, the e-commerce sector has come under the spotlight once again: The Competition Commission of India (CCI) conducted a market study on goods, food services, and accommodation segments and started investigation against Amazon and Flipkart over alleged anti-competitive practices. With increasing footprint of e-commerce in the consumer market, the recent cases against the two companies have evoked a lot of interest.

Publication: Business Standard

Date: February 7, 2020

A disappointed Ikea, the world’s largest furniture retailer, said it was evaluating the impact of the move to raise import taxes on a host of products, from furniture to kitchenware, on its overall business in India. “Ikea is disappointed with the customs duty hike, which impacts furniture and other home furnishing categories,” said Peter Betzel, CEO, IKEA India. Duties were doubled to 20 percent on various types of kitchenware, while furniture items would now attract 25 percent customs duties, from 20 percent earlier.

Publication: The New Indian Express

Date: February 5, 2020

At the dawn of the new decade, the 2020 Budget was expected to be one of the most influential ones for the Indian startup ecosystem, especially in view of the slowing economy and not-so-strong consumer sentiment globally and in India. From a largely myriad affair consisting of multiple support schemes under various ministries for SMEs (small and medium-sized enterprises), the government has come a long way, with the launch of Startup India in 2016 that promised to pack a punch.

Publication: Money Control

Date: February 5, 2020

Entrepreneurship has always been at the heart of Indian economic development. In her Budget speech of 2020, Hon’ble Finance Minister Nirmala Sitharaman rightly expressed concerns over the unimpressive evolution of ‘Start-up India’ initiative despite immense support by the government in the past (viz. angel tax relief, relaxation in carry-forward and set-off of tax losses, tax holiday benefits, foreign direct investment, etc).

Publication: Financial Express

Date: February 6, 2020

Amid heightened expectations of bold reforms to help revive India’s economic growth, Union Finance Minister Nirmala Sitharaman on Saturday tabled Budget 2020 to “fulfil” aspirations of all Indians. In her speech, hailed by Prime Minister Narendra Modi as having “vision” and “action”, India’s first full-time woman finance minister unveiled a roadmap to take India to the next level: that of being a $5 trillion economy. She singled out startups for praise, recognising the role they have played as “engines of growth” for the Indian economy.

Publication: Yourstory

Date: February 3, 2020

“In the Union Budget announced by the honourable Finance Minister, there are measures and initiatives charted out that will aid consumption growth, particularly when it comes to taxation. In the current macro environment, more money in the hands of consumers through rate cuts, elimination of DDT etc. bodes well. The Finance Minister has also set the tone at the top by being empathetic about No Tax Harassment, resolving litigations etc. Furniture is a $42Mn category in India with MSME leading the charge in this industry. Resolving credit issues, APP based working capital solutions and more strategic aspects like National Logistic Policy are all initiatives that address core issues of our MSME sector.

Publication: Deccan Herald

Date: February 3, 2020

India on Saturday raised taxes on imports of goods such as electronic items, toys and furniture, aiming to give impetus to domestic manufacturing in a move that will hit Sweden’s IKEA and other foreign firms. The measures, announced by Finance Minister Nirmala Sitharaman in her 2020-21 budget, come amid criticism from some companies that India has increasingly resorted to protectionist rules that discriminate against foreign companies. Listing the new taxes, the government said they were in line with Prime Minister Narendra Modi’s “Make in India” program aimed at promoting domestic industry.

Publication: The New York Times

Date: February 3, 2020

The budget announcement of a five-year tax holiday on employee stock ownership plans (ESOP) for start-ups would benefit less than 250 out of around 50,000 startups in the country, according to community-based social media platform LocalCircles. Urging Finance Minister Nirmala Sitharaman to make changes to benefit majority of the startups, LocalCircles, in a letter to her on Monday, said: “India currently has approximately 50,000 start-ups and approximately 27,000 are registered under DPIIT Startup India programme. If we go by the section 80-IAC (as mentioned in the Budget 2020 document), less than 250 start-ups operating in the country that are recognised by the IMB (Inter-Ministerial Board), will be eligible for this benefit.”

Publication: Outlook India

Date: February 3, 2020

India’s tech entrepreneurs couldn’t be happier. After all, they were the stars of the country’s union budget for financial year 2021. The word “startup” found at least 15 mentions in Nirmala Sitharaman’s budget speech on Feb. 1, and the finance minister doled out some long-standing wishes of the industry while announcing certain measures that tackle key pain points of the community. “Budget 2020 and the finance minister’s speech has well-articulated India’s vision on not just being a leading provider of digital solutions, but one where technology is the bedrock of development and growth,” Debjani Ghosh, president of IT industry body NASSCOM said in a statement.

Publication: Quartz India

Date: February 4, 2020

Budget 2020 has been a thoughtful weaving together of specific proposals to tackle a wide range of issues. The startup community has welcomed the taxation reforms for employee stock ownership plans (ESOPs), which by their very nature offer returns that are indeterminate in time and quantum. The freshly introduced deferment of taxes for ESOPs is a welcome first step in aligning ESOP-related taxation to realised gains. Similarly, increasing the turnover threshold to Rs 100 crore for startups and extending the set-off period for carry forward of losses to 10 years, will allow startups to optimise their growth decisions in their formative years.

Publication: The Economic Times

Date: February 4, 2020

The underlying theme of Budget 2020 – wealth creation for all – anchored on the ‘Sabka Saath, Sabka Vikas and Sabka Vishwas’ motto underlines the way forward to build a vibrant economy, propelled by inclusive growth. As per the Economic Survey, India has fared reasonably well in terms of its rankings. The central government debt has decreased by 3.3% of GDP. The World Bank’s Ease of Doing Business rankings has seen India move up by 79 places. In the Global Innovation rankings, India has gone from the 74th to 52nd position.

Publication: Business Today

Date: February 4, 2020

If you have been befuddled by news headlines which alternately feature the astronomical losses being posted by online shopping sites and the equally astronomical market capitalizations they seem to secure from private equity investors, be comforted that you are not the only one to be so confounded. The mechanisms that drive internet-based businesses, particularly those that deal with consumer e-commerce, are not the same that have driven traditional businesses. Unraveling these new processes will go a long way towards taking a rational public policy stance on the controversies surrounding consumer e-commerce in India.

Publication: Business Standard

Date: February 5, 2020

Top executives ET spoke with said that while focus on solving issues surrounding farming, logistics and intellectual property could have a positive impact on startups in the country in the long term, several pressing issues have been given a miss. “The budget was a step in the right direction, but these are just baby steps for an economy that needs giant leaps to become an innovation hub,” was the response of iSPIRT, a think tank for India’s software products companies. This mirrors the sentiment of at least 10 other top executives across roles in the ecosystem.

Publication: The Economic Times

Date: February 3, 2020

Amazon India and Flipkart are studying the Budget proposal on levy of one per cent TDS, and may reach out to the government for clarifications. “We are studying the details, and will reach out to the government for clarifications. We hope the tax regime is simple and uniform so that millions of small and medium businesses can go online, digitise their operations and continue to contribute to growing the economy,” an Amazon India spokesperson said in response to an e-mailed query. Flipkart also said it was going through the proposal. “We are studying the details, particularly how it impacts the MSMEs and Sellers on our marketplace platform.

Publication: The Economic Times

Date: February 3, 2020

The issue of preferential treatment given by e-commerce platforms to its own products or to related entities will be examined by the Competition Commission of India (CCI) on a case-to-case basis. This has implications for leading global e-commerce players against whom the CCI has begun an inquiry following complaints from small retailers. In a report titled ‘Market Study on E-Commerce in India’, the CCI says that “the issue of preferential treatment by e-commerce platforms to its own products, or its own/related entities, including factual establishment of the same and its effect on competition, is thus a matter of case-by-case determination by the Commission”.

Publication: ET Retail

Date: February 1, 2020

With each new year, there are plenty of expectations from the Narendra Modi government and the Union Budget 2020. While from 2014-2019, the focus of the government and successive finance ministers has been on boosting innovation and propping up the startup ecosystem, with the Union Budget 2020, it will shift to turning around the economy and beating the consumer spending decline, the flagging GDP growth and many ailing sectors such as auto, real estate, agriculture, energy and others. This year, the government is likely to see a shortfall of INR 2.5 Lakh Cr in the tax revenue, and the government has yet again pushed the RBI for another dividend boost.

Publication: Inc42

Date: February 1, 2020

The amendment will take effect from April 1, 2020. The government on Saturday proposed a new levy of one per cent TDS (tax deducted at source) on e-commerce transactions, a move that could increase burden on sellers on such platforms. “In order to widen and deepen the tax net by bringing participants of e-commerce (sellers) within tax net, it is proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of 1%,” as per 2020-21 Budget documents.

Publication: The Hindu

Date: February 1, 2020

The Union Budget has always been a much-anticipated event. But this year, there is heightened interest as there are strong headwinds faced by the country with depressed consumer sentiment and lower tax collections. It remains to be seen how Union Finance Minister Nirmala Sitharaman, who will be presenting her second Budget since her appointment to the government last year, will steer the economy to a growth path. The Economic Survey, which was tabled in the Parliament on Friday, has projected an economic growth of 6-6.5 percent for the upcoming financial year, and this seems like a modest target, given the country aims to become a $5 trillion economy by 2024.

Publication: Yourstory

Date: February 1, 2020

The Indian angel investment landscape has changed significantly in the last decade. From less than 50 angel investors, the Indian startup ecosystem now has over 2K angel investors in this decade, as per DataLabs by Inc42’s estimates. The rise of angel investments has coincided with the increase in the number of startups, and often successful startup founders have turned angels while still at the helm as we have seen in the example of Snapdeal founders Kunal Bahl and Rohit Bansal, or after their exits as in the case of Sachin Bansal and Binny Bansal.

Publication: Inc 42

Date: January 31, 2020

In a bid to support further investments in the Indian startup ecosystem, union finance minister Nirmala Sitharaman proposed to set up an Investment Clearance Cell while presenting Union Budget 2020 today (February 1). The minister said that this “cell will provide “end-to-end” facilitation and support, including pre-investment advisory, information related to land banks and facilitate clearances at the centre and state level. This will work through a portal.” The minister emphasised that entrepreneurship has always been the strength of India. “Even today, young men and women have given up greener pastures elsewhere to contribute to India’s growth. They are risk-taking and come up with disruptive solutions to festering challenges,” the minister said.

Publication: Inc42

Date: February 1, 2020

Startups on Saturday welcomed the Budget proposal of relaxing ESOPs taxation, but said linking it to Section 80-IAC will limit its impact to a small section of startups. “The relaxation for ESOP taxation was welcome but linking it to Sec 80-IAC makes it meaningless as it impacts only a 100 odd startups. We had requested for this to apply to all DPIIT (Department for Promotion of Industry and Internal Trade) registered startups. I do hope they correct that urgently,” Indian Angel Network Chairman Saurabh Srivastava said in a statement.

Publication: Financial Express

Date: February 1, 2020

India is the third biggest startup ecosystem in the world. The budget proposal for the startups ecosystem, especially the one on tax on employees stock options (Esops), received a big thumbs up from the fledgling sector. The budget recommends a five-year tax holiday on Esopss, a 10- year tax exemption for startups with under-₹100 crore turnover and also talks of a seed fund to push new businesses. India is the third biggest startup ecosystem in the world and the government has been focused on pushing innovative startups through policy interventions for some years now.

Publication: The Hindu

Date: February 1, 2020

A ‘disappointed’ Ikea said it was evaluating the impact of the government’s move to raise import taxes on a host of products, from furniture to kitchenware, on its overall business in India. “Ikea is disappointed with the customs duty hike announced in the Union Budget, which impacts furniture and many other home furnishing categories,” said Peter Betzel, chief executive, Ikea India. Finance minister Nirmala Sitharaman announced raising custom duties on wooden furniture, tableware, kitchenware, and toys, among other products. The Swedish retailer currently imports about 75% of its products.

Publication: The Economic Times

Date: February 2, 2020

Last year saw two global behemoths – Walmart and Amazon – lock horns for dominance in Indian e-commerce market. Meanwhile, India’s largest conglomerate, Reliance Industries pulled its socks to enter e-commerce industry. However, the sector has been rocked by decline in consumer demand and uncertainty over policies. Now the sector is hoping for some good news to come out of Union Budget 2020-21. E-commerce players such as Amazon, Flipkart, Paytm and other will be listening closely as Finance Minister Nirmala Sitharaman presents her second Budget Speech shortly from now.

Publication: Business Today

Date: February 1, 2020