E-commerce is the new buzz-word in the start-up and technology community. And it's all set to scale new highs as it looks to outstrip the impressive growth recorded by household names like Flipkart and Snapdeal last year.
The Digital India idea has a slew of start-up and established companies in the technology and e-commerce space excited. They all believe Budget 2015 will be the start of a new era of higher growth. But only if the finance minister stays away from unfavourable regulations and takes concrete steps towards improving the ease of doing business in India.
E-commerce is the new buzz-word in the start-up and technology community. And it's all set to scale new highs as it looks to outstrip the impressive growth recorded by household names like Flipkart and Snapdeal last year. Financing, however, will be key to the success of this growth plan. And venture capitalists aside, the industry now wants the government to open the doors to more foreign direct investment.
Kunal Bahl, CEO, Snapdeal: "There is a lot of discussion around FDI in retail, e-commerce company that owns inventories and we still are in discussions because that is not the business model we follow. We follow a different business model. We see ourselves as a technology platform where 100 percent FDI is allowed."
Funding avenues aside, the sector also wants the government to do more in pushing it's the Digital India drive. They say an easier policy regime will be manna from heaven for the growing legion of firms offering internet-based services.
Nishant Rao, country manager, LinkedIn India says: "Government is already talking a lot of the right stuff - making it easier to do business, investment in digital technologies with Digital India. If we start delivering on those pieces and deliver on the policy aspects, that will help the economy grow faster and we will be in a good shape."
Speaking of policy, the government has already begun looking at coming up with a policy for e-tailers and here too, players say an easier operating environment is the order of the day.
Bahl adds: "My only recommendation/ suggestion would be that as long as the framework makes it easier for us to operate, it will be a welcome."
The ball is now in finance minister Arun Jaitley's court. The e-commerce and the technology space are holing for big things in Budget 2015 and the minister will have to balance the need for quick growth with a policy and regulatory framework that provides sustainable growth opportunities.
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