Budget 2024 Expectations: What Will Be Added In E-commerce Cart By FM?

Budget 2024 Expectations: As we approach budget 2024 in India, the e-commerce sector is buzzing with expectations. Government initiatives to help MSMEs promote their products and brands on e-commerce platforms are highly anticipated.

Among other key demands, developing a skilled workforce equipped with cybersecurity knowledge will be essential for safe and secure e-commerce transactions.

These are just some of the key expectations the e-commerce sector has from budget 2024. The upcoming budget will be closely watched to see how the government addresses these areas and shapes the future of e-commerce in India.

Here are some key areas it’s focusing on:

Dr. Somdutta Singh, serial entrepreneur, founder and CEO Assiduus Global Inc, LP Angel Investor, Advisor Govt of India (Core Committee Member of WEP- Niti Aayog) in the e-commerce sector, underlined that embracing technology is crucial for the success of the retail industry. A well-structured budget that aims to enhance business and foster innovation, allocating funds for research and development, along with the integration of cutting-edge technologies such as artificial intelligence and data analysis, will enable businesses to stay attuned to consumer demands, he said.

Additionally, collaborative efforts involving government bodies, business leaders, and educational institutions can establish a shared working network that supports the inception of new businesses.

Focus On Small Retailers

Singh urged that policymakers should prioritise attention to small retailers in tier 2 and tier 3 cities. These cities have stores with the potential to thrive and compete with more established businesses.

The budget should earmark funds for enhancing skills and adopting technology. By investing in education and skills development, the government can uplift local businesses, enabling them not only to withstand market challenges but also to excel in the demanding retail landscape.

Singh also highlighted the role of Open Network for Digital Commerce.

“I am anticipating that this budget might endorse the implementation of the ‘Open Network for ONDC initiative. This initiative can empower MSMEs to access various e-commerce platforms without encountering entry barriers, benefiting from standardised data and processes,” Singh said.

MSME & E-commerce

Singh also elaborated on how the adoption of e-commerce by MSMEs would facilitate their entry into both domestic and international markets, contributing to economic growth.

“Allocating budgetary resources to enable MSMEs to integrate e-commerce platforms into their business strategies will foster sustainable development. Additionally, ONDC will play a pivotal role in shaping the MSME ecosystem, aiding suppliers in reaching a broader customer base and leveraging diverse logistics for accelerated growth,” Singh urged.

ONDC Expectations From Budget 2024

ONDC in a statement said that this year’s budget will be crucial for the ONDC ecosystem of small startups, MSMEs, and large businesses across the country.

“In the budget, we hope for more simplified operations and compliance in sectors like financial services, facilitating consumers and businesses to derive the maximum possible benefits from an open network like ONDC Network. We are confident that the Government will continue to improve regulatory compliance requirements for emerging business models that depend on DPIs,” ONDC said.

ONDC added that it looks forward to further schemes to accelerate digitisation across the nation including smaller cities, towns and villages.

Technology For Ease

Unicommerce, an e-commerce enablement SaaS platform, said that India’s vibrant retail sector, supported by the expanding e-commerce ecosystem, continues to evolve to meet the needs of its users. Over the years, the government has integrated technology tools to simplify taxation, streamline logistics and promote the use of e-commerce to boost exports.

“We anticipate continued support of the government in facilitating the use of technology to make India’s retail sector future-ready and aligned with growth opportunities,” the statement added.

Startup Ecosystem & E-commerce

Nitya Sharma, founder and CEO, checkout network, Simpl, added that the Indian startup sector has the potential to significantly accelerate commerce in the country, elevate people’s lives and fastrack the journey of India’s internet economy to $1 trillion by 2030.

“This year’s Vote on Account followed by the full year’s union budget should view startups as the sunrise sector, provide easy financing for sellers akin to MSMEs and open up more avenues in the era of unbundling of e-commerce which has started with ONDC. We would expect a greater collaboration between the government and industry in further simplifying the ease of doing business in India and resolving bottlenecks swiftly.”

Remember, it’s still an interim budget year due to the upcoming Lok Sabha elections. There might be limitations on policy announcements, but some progress on digital infrastructure and skill development initiatives is still possible.