ECAI wants conducive environment for e-commerce

|March 5, 2015 0
ECAI is looking for critical reforms like permitting FDI for the B2C inventory led model

NEW DELHI, INDIA: The E-commerce Association of India (ECAI) is looking for a positive response from the government on critical reforms like permitting FDI for the B2C inventory led model. This has been an industry demand for a long-time now, especially as many small and medium sized e-commerce players face obstacles on easy access to capital and technology. The industry has been hoping that the government would at least review a partial opening of the sector to FDI.

ECAI has welcomed the government’s announcement on the implementation of the Goods and Service Tax (GST). It has however sought for the government in the interim to create a more liberal tax environment for E-commerce companies in the states.

Commenting on the budget, Nasir Jamal, Secretary General, ECAI said, “While we welcome the government’s move on GST, it is our plea that in the interim a supportive tax environment should be built in the states. On behalf of the E-commerce industry, we request the government to work towards a more conducive environment by liberalizing the sector so that a large number of micro, small and medium enterprises can benefit.”



Expressing disappointment on no positive announcement for Ecommerce industry in Budget 2015, Zuhaib Khan, Co-founder, said, “Ecommerce today has been a key driver for spurring growth in various sectors and thereby providing a boost to the government’s Make in India and Digital India program. It has been instrumental in providing a platform to first-generation entrepreneurs, boosting local manufacturing and creating jobs. However, the Prime Minister’s visions of Digital India and Make in India can only materialize if E-commerce is allowed to operate in a free, open and equal environment.  Currently E-commerce is only partially liberalized with B2B being opened for 100% foreign investment, while B2C has been prohibited from any FDI. The partial liberalization of the sector has made many investors apprehensive of the long-term growth and sustainability of the sector. While a few large players have managed to get funding and are able to dominate the sector, the smaller and medium sized E-commerce players are getting side-lined and options for customers are reducing. We hope that the government will create a liberal and clear policy on E-commerce enabling foreign investment in the business to consumer (B2C) inventory led model.”

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